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Mike Novogratz's Crypto Bank Galaxy Digital Plans to Issue Security Tokens

  • Alex Dovbnya
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    As Bloomberg suggests, Mike Novogratz clearly wants Galaxy Digital to become the Goldman Sachs of crypto 

Mike Novogratz's Crypto Bank Galaxy Digital Plans to Issue Security Tokens
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According to Bloomberg, cryptocurrency bank Galaxy Digital, which is helmed by Mike Novogratz, is planning to launch security tokens offerings (STOs). He hopes to get a first-mover advantage over traditional banks.

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Digitalized IPOs 

While crypto represents a $273 bln industry, not a single company has gone public up to this day. Bitmain, the Beijing-based mining, stopped short of achieving this feat due to the decline of the mining industry and internal infighting. Cryptocurrency exchange Coinbase was valued at $8 bln, but multiple rumors about its IPO plans have so far failed to come to fruition.  

STOs represent an innovative way of fundraising, which is set to disrupt the IPO market. Fun fact: the first IPO was conducted more than 400 days ago, so it might be about time for a change.

Unlike ICOs, security tokens are regulated, which guards investors against unscrupulous projects that can barely offer anything apart from a white paper.

We are sober and patient about how fast it will grow, and we are well capitalized. This feels like a perfect addition.”

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“Tokenization of everything”

The article states that Novogratz wants to issue tokens that would grant their holders with rights to valuable objects, such as rare art pieces, and revenue streams. The crypto bigwig says that regulators are acting “a little slower” than they expected, and the tokenized economy is far from being a reality.

Novogratz, who spent more than a decade at Goldman Sachs, also claims that traditional banks do not have the right DNA to understand crypto.

Our edge over time is that we are going to see more projects and get an understanding of what works and what doesn’t.”

Cover image via everipedia.org
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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