Galaxy Digital Go Tokenize Stock After Weak Q2, Shares Don Drop 9%
Galaxy Digital don file with SEC make dem fit try turn dia Class A stock to token, dem dey work with regulated transfer agent Superstate Services to develop digital issuance model. Bitcoin and cryptocurrency asset manager wey Mike Novogratz lead sign Digital Transfer Agency Agreement with Superstate for May to allow make share transfer dey on chain. The plan be to start 24/7 trading channel for GLXY tokens, make non-US investors fit join and make liquidity for decentralized finance apps like lending and trading better. Tokenized-stock market still dey early stages, Galaxy Digital warn say on-chain trading fit get lower liquidity, volume and regulatory okei pass traditional exchanges like Nasdaq. For the meantime, their Q2 financial results show say total revenue be $8.7m, e remain same year-to-year, but net revenues and operating income fall 30% quarter on quarter. Assets wey dem manage reduce 43% to $6.3bn even though dem sell over 80,000 BTC for clients. Galaxy Digital come back to profit with net income of $30.7m, but shares drop 9% to $26.26 after the news.
Neutral
Wen Galaxy Digital start to tokenize stock na show say DeFi fit grow, but their Q2 earning no too sweet and dem share price drop by 9% show say market still dey shake. For short time, investors fit still dey careful because on-chain stock markets still dey fresh and regulators still dey form wahala. But for long term, to get 24/7 tokenized equity trading fit make market sharp, increase liquidity, and make more people sabi join, this one fit be better boost for digital asset platforms. History show say when tokenized funds start and big crypto exchanges list token, market go expand slow slow, but e no fit fix loss sharp sharp. So now market no too react, but this new move fit make people trust tokenized securities more as time dey go.