Galaxy Digital has gained approval from the Financial Regulatory Authority (FINRA) to conduct initial public offerings (IPOs) for cryptocurrency companies.
The endorsement authorizes Galaxy Digital Advisors to act as an underwriter to certified public offerings of equity, debt or other corporate securities in the United States. This appends to its current capabilities to manage private placings of securities as an induction agent and to provide counsel on mergers and acquisitions.
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 is a diversified, multi-service merchant bank dedicated to the digital assets and blockchain technology industry. Their team has extensive experience spanning investing, portfolio management, capital markets, operations, asset management, and blockchain technology.
On this announcement, Novogratz says:
“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.”
Novogratz is a major Bitcoin proponent who has recently predicted the price of Bitcoin to touch $20,000 by 2020. He also went on to claim that Bitcoin is finally reaching the end of the saturation point as a digital store of value.
ICO enterprise has decreased to a standstill. Still, every month schemes still get financed through ICOs. New instruments like IEOs (Initial Exchange Offerings) and STOs (Security Token Offerings) have shown that desire for lower friction financing persists despite regulatory challenges. Novogratz is certainly gunning to be the pioneer to fulfill this demand.