Mike Novogratz’s Galaxy Digital is looking to step into the world of tokenized money market funds. The investment firm is reportedly planning to launch its own version, setting the stage for a new clash in the digital asset space. If all goes as planned, Galaxy’s fund will compete directly with big players like BlackRock’s BUIDL and Franklin Templeton’s BENJI.
Sources familiar with the plans told CoinDesk that Galaxy aims to roll out its fund in the coming months. It should be available on the Ethereum, Solana, and Stellar blockchains. Crypto bank Anchorage Digital will act as the custodian, keeping the assets safe. The company plans to start on one of these three networks first, then expand to others. A firm launch date isn’t set yet.
A person close to Galaxy’s plans explained their goal. They said the main idea is to use tokenization to offer instant cash access. This area is seeing a lot of new ideas, and Galaxy wants to be part of it.
Once launched, Galaxy’s fund will join a growing field of similar tokenized products. These funds mix traditional finance with blockchain technology. Galaxy has carefully watched what others like BlackRock and Franklin Templeton have done. This allows them to see how people use these funds and how to make their own better.
Galaxy’s Tokenization Efforts
This move shows Galaxy Digital, based in New York, wants to innovate in tokenized funds. They aim to create a product that combines blockchain and finance, focusing on easy access to money.
Novogratz’s company already provides many services and products. These include managing, trading, and safeguarding cryptocurrencies for institutions. They help connect the crypto world with traditional finance.
Other major companies are also developing their own tokenized money market funds. This is part of a larger trend. Financial institutions are exploring how to tokenize real-world assets, or RWA. This means putting physical or traditional financial assets onto a blockchain network. Last year, Coinbase was reportedly working on its own blockchain-based tokenized money market fund.
BlackRock, a giant with over $10 trillion in assets, launched BUIDL in March 2024. It started on Ethereum and later expanded to Solana. BUIDL has quickly become the largest fund of its type, holding more than $2 billion in assets. The overall market for tokenized real-world assets is already quite large, valued at over $30 billion, according to specialized data from rwa.xyz.