Galaxy Digital Granted Broker-Dealer License by FINRA

Samuel Haig

On July 24, Galaxy Digital Holdings Ltd announced that it had been granted a broker-dealer license by independent United States securities regulator, the Financial Industry Regulatory Authority (FINRA).

The licensing allows Galaxy Digital to act as an underwriter to registered public offerings of debt, equity, and other corporate securities in the U.S.

Ian Taylor, the head of advisory services for Galaxy Digital, described the licensing as “an important step in the development” of the firm. “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,” he said.

FINRA Licensing to Facilitate Expansion in Galaxy Digital’s Services

Michael Novogratz, the chief executive officer and founder of Galaxy Digital, stated: 

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.

The following day, Mr. Novogratz predicted that BTC prices may break above previous all-time highs following an influx of retail and institutional demand in the wake of Facebook’s planned virtual currency Libra.

Mr. Novogratz emphasized the importance of Facebook’s two billion person user base being exposed to virtual currencies, stating: “assuming [Libra] gets turned on, you now have up to two billion consumers that actually get to start experimenting and using it.”

Novogratz Argues Libra Hearing Was “Anti-Facebook” not “Anti-Crypto”

TheGalaxy Digital founder also pointed to the upcoming launch of Telegram’s cryptoasset, TON, stating: 

In about two or three months Telegram is launching their blockchain. Telegram is about 218 million users, and they are ardent users. So before Facebook launches, we are going to have a real view at an experiment.

Mr. Novograt interpreted the recent Senate Banking Committee hearing on Libra in the U.S. House of Representatives was “more anti-Facebook than they were anti-Libra, or anti-crypto,” arguing that while “both the republicans and democrats are really angry at Facebook," the "Libra project really isn’t going to be owned by Facebook, it will be run by one hundred different participants in what looks like a distributed system.”