As of late-July 2019, Galaxy Digital Holdings has announced that the Financial Industry Regulatory Authority (FINRA) has approved the business expansion of its broker-dealer, Galaxy Digital Advisors LLC. As a result, Galaxy Digital Advisors can legally underwrite registered public securities offerings.
Galaxy Digital’s FINRA Approval Explained
Galaxy Digital is a merchant bank with a focus on digital assets. The company is headquartered in New York City and has experience involving investing, portfolio management, capital markets, operations, asset management, and blockchain technology.
Galaxy Digital already has the legal ability to lead private placements of securities as a placement agent.
Now, FINRA’s recent approval enables Galaxy Digital Advisors to act as underwriters on registered public securities offerings in the United States, including equity and debt.
Ian Taylor— head of Advisory Services for Galaxy Digital— says,
“This is an important step in the development of our advisory franchise. With this approval, we now have the ability to finance digital asset and blockchain technology companies through their entire life cycle – from founding, through private capital raisings, to their initial public offering and beyond.”
Galaxy Digital CEO and Founder Michael Novogratz believes the move is precisely what differentiates his company from other competition:
“We are excited to add this capability to the suite of services we provide. No other firm combines our expertise in digital asset and blockchain technology companies with the ability to structure, distribute, and now underwrite, financings. This approval enables us to expand our ability to educate investors newly interested in this growing sector and further institutionalize the markets in which we operate.”
Security Tokens as the New Reality of Digital Assets
A growing number of Fintech companies are integrating Distributed Ledger Technology (DLT) with regulated financial securities. The result is the emerging wave of security tokens.
In differing from Initial Coin Offerings (ICOs), the Security Token Offering (STO) abides by the jurisdiction-appropriate laws and regulations, while also leveraging the many benefits of DLT.
In a regulatory compliant manner, real-world assets such as equity, real estate, investment funds, and even fine art have witnessed tokenization.
What do you think of Galaxy Digital’s recent approval from FINRA? Let us know what you think in the comments section below.
Image courtesy of Galaxy Digital.