The cryptocurrency market is growing fast and is calling for several inventions. It might have started not very long ago, but Galaxy Digital Holdings Ltd is slowly transforming into the Goldman Sachs of cryptocurrencies, as Bloomberg affirms.
Michael Novogratz’s vision is making positive strides in the right way. The “crypto bank” was granted by the FIRA (Financial Industry Regulatory Authority) approval for the underwriting license. The license means that the company can act as an underwriter in registering public offerings of debt, equity, and other corporate securities.
Moreover, the New York-based company is looking closely at shepherding the security token offerings-digitized IPOs.
Galaxy Digital Just Steps Away
Galaxy Digital is merely a diversified as well as multi-service commercial bank that is focused on digital assets and the blockchain technology. The company already offers private placement of the securities as placement agent as well as advice on the mergers and acquisitions.
According to Novogratz, the company is well-capitalized, and there’s patience with the rate it’s growing, and that the latest addition is perfect for them.
The firm has already invested in start-ups as well as coins, and it helps companies to secure funding for almost everything starting from the early stage to later-stage rounds. As of July 31, Galaxy managed about $390M in assets, which indicates good progress.
Being part of the Crypto Ecosystem
There are signs that the IPO demand could be on the cards given that a plethora of crypto exchanges such as Coinbase Inc. have already made money at valuations in billions. Also, several other companies have plans in place on IPOs.
Furthermore, Galaxy is working on the means to finance a Bitcoin mining data center which is to be located in the US. Besides, Mergers, as well as acquisitions advising, are also poised to take off. Speaking about the crypto ecosystem, Novogratz notes that, they’re focused to be a significant part in the ecosystem.
He added that he’s investing in as well as advising alternative platforms which would allow for the Libra-like coins (which he rates its launching chances next year at 50%).
Also, Galaxy is considering issuing tokens which could connect to or simply represent ownership of several valuable objects as well as revenue streams.
The main focus for Galaxy is to have its foot forward and have the first-mover advantage as some traditional investment banks could also join the queue later.
Interestingly, Galaxy is backed by a group of individuals with an array of experience with a number of them having worked at Goldman Sachs Group in the past. For instance, Ian Taylor, head of Galaxy’s advisory business, previously at Goldman Sachs, brings an 18-year experience.
The traditional banks are yet to have all it takes to understand cryptocurrencies at full. Therefore, Galaxy Digital Holdings Ltd, with all the projects lined up stands a chance of becoming the Goldman Sachs of cryptocurrency. For now, all the signs are positive for Novogratz’s firm, but only time will tell whether his vision will stand.
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