Tokenization startup Superstate has partnered with Galaxy Digital to enable investors to hold tokenized shares in Galaxy’s Nasdaq-listed stock on the Solana blockchain. The beauty of this is that they own the stock with all the associated rights.
Many of the recent tokenized stock offerings may have looked exciting and expanded access, but they disappointed on the shareholder rights front. Often the “tokenized stocks” are in fact derivatives, trackers or even loan notes.
We thought the Galaxy tokenization would involve locking stock at a custodian and Superstate tokenizing it. But we were wrong. “It is a direct issuance,” Superstate’s Rachel Levitan Keidan told Ledger Insights via email. “So you are not handing over your traditional share to a custodian who then mints a token. The idea is that the token is the share, just on a different ledger. Superstate as the SEC-registered transfer agent, officially records that your ownership is now represented onchain.”
How does it work? It’s similar to burning the conventional stock and minting a new digital one. A GLXY stock owner asks their broker to transfer their stock to Galaxy’s primary transfer agent, Equinit. They allocate the stock to the account of the other transfer agent, Superstate. The investor onboards with Superstate and receives the tokenized stock in their digital wallet. As Ms Keidan says, the stock is just on a different ledger.
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