Galaxy Digital's assets surged by 43% and after completing a massive transaction of 80,000 BTC, it is focusing on tokenization of GLXY.

Cryptocurrency giant Galaxy Digital (NASDAQ: GLXY) disclosed in its latest filing with the U.S. Securities and Exchange Commission (SEC) that it is exploring the possibility of tokenizing its publicly traded Class A common stock. This move is part of the company's broader strategy to enter the blockchain finance sector. Galaxy has signed a digital transfer agency agreement with Superstate, a tokenized securities service provider registered with the SEC, to evaluate alternative options for investors to hold and trade GLXY stock based on blockchain. However, the company also warned that "the tokenized securities market is still in its infancy." At the time of this announcement, Galaxy had just experienced a turbulent second quarter: despite a 43% quarter-over-quarter increase in total assets to $9.1 billion and a net profit of $30.7 million, adjusted total revenue fell by 30%, and it completed one of the largest proxy sell-offs in history for its clients, involving over 80,000 Bitcoins (approximately $5 billion at the time). CEO Mike Novogratz believes that the "corporate treasury craze focused on crypto asset reserves may have peaked," but is optimistic about the growth potential of Ethereum-related companies.

Galaxy promotes stock tokenization, embracing RWA compliance exploration

• Exploring Tokenization of Stocks: Galaxy Digital stated in an SEC filing that it is "assessing the feasibility of tokenizing our Class A common stock."
• Collaborating with Compliance Partners: The company has signed a digital transfer agency agreement with Superstate Services, an SEC-registered agency focused on tokenization of securities.
• Goals and Value: If implemented, the tokenized GLXY stocks will provide investors with an additional mechanism to hold and trade company shares through Blockchain channels, enhancing liquidity and accessibility.
• Early Strategy: The company's interest in tokenized equity is not a new development. In May of this year, CEO Novogratz publicly discussed plans to convert GLXY stock into tokens for DeFi lending and trading.
• Market is still in the early stages: Galaxy cautiously points out that the "tokenized securities market is still in its infancy," and cannot guarantee that tokenized GLXY will have sufficient or orderly market liquidity.
• Institutional Perspective: Ali Mahir Aksu, founder of Untold.io, told Cryptonews: "Galaxy's tokenization of its stock through Superstate is a strong signal that on-chain public equity is moving from theory to institutional reality... It reflects an increasing shift: tokenization is not just about liquidity; it's about programmability, accessibility, and future-oriented ownership models."

Q2 Performance Overview: Asset Surge Amid Volatility, Completed 80,000 BTC Proxy Selling

• Asset Scale Soars: Galaxy reports that total assets reached $9.1 billion in the second quarter of 2025, an increase of 43% compared to the previous quarter.
• **Turnaround to Profit: ** The net income for the quarter is $30.7 million, a significant improvement compared to a loss of $295 million in the first quarter.
• Revenue Pressure: Adjusted total revenue decreased by 30% quarter-on-quarter, and total trading fees reduced by one third.
• Milestone Event: This quarter, the company completed its corporate restructuring and officially listed on Nasdaq on May 16, with an opening price of $23.50 per share. Novogratz described the years of delays in going public as "frustrating."
• Core Business Highlights:
  • Digital Asset Division Performs Strongly: Adjusted EBITDA is 13 million USD, with a 28% increase in global market gross profit.
  • Margin loan demand rises: Average loan account size increases to $1.1 billion.
  • Record Bitcoin Agency Trading: After the end of the quarter, over 80,000 Bitcoins were sold on behalf of clients, making it one of the largest transactions by nominal value in similar trades to date. Galaxy stated that July was the best month ever for its digital asset operations.
  • Asset Management and Staking Growth: As of the end of June, the platform's assets under management (AUM) reached $9 billion, but staking yields have decreased by 26% due to reduced on-chain activity.
• Data Center Expansion: The construction of the Helios data center park is ongoing. It has been confirmed that CoreWeave has committed to using all 800 megawatts of power approved for this site. The company has also acquired an additional 160 acres of land nearby, bringing the total area of the park to over 1500 acres and increasing the potential capacity to 3.5 gigawatts.
• Market Interpretation: Dash BD and Marketing Director Joël Valenzuela analyzed to CryptoNews: "The decline in assets in Q2 may simply be a temporary pullback caused by global geopolitical uncertainty... Once the world feels capable of fully utilizing Blockchain technology, the upside potential is huge." Aksu, founder of Untold.io, believes: "The decline in assets in Q2 is partly due to cyclical cooling and partly due to growing pains—rather than structural defects. Galaxy's transformation towards AI/data centers indicates they are making long-term layouts: building across cycles rather than just going with the flow."

Novogratz's View: The Crypto Treasury Craze May Have Peaked, Long-Term Bets on Tokenization and Infrastructure

• Corporate Treasury Trend Analysis: During the Q2 earnings call, Novogratz stated that the wave of "Crypto Treasury Firms" incorporating digital assets into their balance sheets "may have peaked." He pointed out that while early entrants (such as Bitcoin-focused MicroStrategy) led the trend, new companies may struggle to gain the same level of attention.
• Optimistic about Ethereum ecosystem players: Specifically optimistic about companies like BitMine and SharpLink that focus on Ethereum, viewing them as key players well-prepared for further growth, but warning that future scalability for startups may be more difficult. Galaxy is currently collaborating with over 20 such companies, managing approximately $2 billion in assets and generating stable fee income.
• Institutional Infrastructure Layout:
  • Staking Service Expansion: In July, it integrated its staking platform with Fireblocks, allowing over 2000 financial institutions to directly utilize staking services through Fireblocks' custody system.
  • Venture Capital Fund Closure: Its investment division Galaxy Ventures completed the fundraising for its first external venture capital fund in June, raising $175 million (exceeding the original target of $150 million). This fund focuses on tokenization, stablecoins, and early projects in blockchain infrastructure. Since 2018, Galaxy has invested in over 120 startups, including Monad and Ethena.
• Long-term Vision and Challenges: Novogratz reiterated that the blockchain-based market remains a long-term vision, but the liquidity issues of tokenized assets still lack clear answers.

Conclusion: Traditional financial giants accelerate on-chain exploration, the compliance path for tokenized securities gradually emerges As the first pure cryptocurrency financial institution to land on the Nasdaq mainboard, Galaxy Digital's exploration of stock tokenization is of symbolic significance. This not only opens up a new channel for GLXY investors to hold and trade on-chain but also provides a reference paradigm for large-scale compliance of traditional financial assets on-chain — seeking innovation within the existing regulatory framework by collaborating with SEC-registered entities (Superstate). Although the tokenized securities market is still in its early stages and liquidity is in question, Galaxy's entry has significantly boosted industry confidence. Coupled with its demonstrated business resilience during the turmoil in Q2 (completing one of the largest Bitcoin agency transactions in history, seeing asset management scale grow against the trend, and advancing data center strategy) and its forward-looking judgment on market trends (the vault craze peaks, betting on the Ethereum ecosystem and tokenization infrastructure), Galaxy continues to showcase its strategic positioning as a key bridge connecting traditional finance and the cryptocurrency ecosystem. Whether its stock tokenization experiment will succeed will serve as an important indicator for observing institutions adopting RWA (real-world assets) processes.