New 100 million Hedge Fund: Mike Novogratz’s Crypto Firm Galaxy, plans to launch a $100 million Hedge Fund in the First Quarter, aiming to Profit from both Rising and Falling Prices after a Recent Digital Asset Market Sell-Off. The Fund will Invest up to 30% in Crypto Tokens, and the Remainder in Financial Services Stocks affected by Crypto Regulation, Technology, and Artificial intelligence (AI). It has already Secured $100mn from Family Offices, Wealthy Investors, and Institutions, with Galaxy making a Seed Investment.
The Launch follows a Sharp Decline in Bitcoin, down 28% from its October 2025 Peak and Trading near $90,000. While Galaxy’s Fund Head Joe Armao believes the “up-only” Phase of Crypto may be Ending, He remains Bullish on Bitcoin and Major Cryptocurrencies. He also sees Opportunities in Identifying Winners and Losers across Financial Services as Crypto, Regulation, and AI Disrupt Banks, Payment Firms, and Data Companies.
The New York Stock Exchange Plan to Start Trading Tokenized Securities:
It is only a matter of time before Traditional Finance begins to Embrace the Efficiency that Blockchain brings to Finance. This week we saw a Major Indication that this is happening with the New York Stock Exchange, announcing that it is Developing a 24-hour Trading Platform for Tokenized Securities. For more than Two Centuries, the NYSE has been Synonymous with the Architecture of Traditional Equity Trading, Defined by Fixed Market Hours, Centralized Clearing, and Delayed Settlement. Its Decision to Explore a Blockchain-based Venue with continuous Trading and Instant Settlement Signals a possible Reconfiguration of how Securities are Issued, Traded, and Owned.
At the Core of the Proposal is Tokenization: the Representation of Traditional Financial Securities as Digital Tokens recorded on a Blockchain. These Tokens would Embody the same Legal and Economic Rights as Conventional Shares, but would Move and Settle using Distributed Ledger Technology rather than Legacy Clearing and Settlement Systems. Under the NYSE’s Plan, Companies would be able to issue Securities Directly onto this Platform, where Trading could occur twenty-four hours a day, and Transactions would Settle immediately, rather than on a Next-Business-Day Basis.
For Investors, the most Visible Change would be Continuous Market Access. Equity Markets have Historically reflected the Rhythms of National Business Hours, an Arrangement that Increasingly Feels Anachronistic in a Global, Digitally Native Economy. Crypto Markets, by Contrast, Operate Continuously, allowing Price Discovery to occur in Real Time across Time Zones. A 24-hour NYSE-Affiliated Venue would Extend this Logic to Regulated Securities, Enabling Investors in Asia, Europe, and the America, to Trade without being Constrained by U.S. Market Hours. This could Improve Iquidity during periods that are Currently Thinly Traded and Reduce the Gap between when Information Emerges and when Markets can Respond.
Equally Significant is the move toward Instant Settlement. Today’s Equity Markets Operate on a T+1 Settlement Cycle, Meaning that the Exchange of Cash and Securities occurs One Business Day after a Trade is Executed. While Largely Invisible to Retail Investors, this Delay introduces Counter Party Risk and Forces Brokers and Clearing Houses to Post Substantial Amounts of Collateral. Instant Settlement, a Native Feature of Blockchain Systems, would Compress this Risk Window to Near Zero. From an Academic Perspective, this Represents a Shift from Trust Mediated by Intermediaries toward Trust Embedded in System Design. For Investors, it could Translate into Reduced Systemic Risk and potentially Lower Transaction Costs over Time.
The use of Stablecoins as a Funding Mechanism further underscores the Hybrid Nature of the Proposed Platform. Stablecoins, which are Digital Assets pegged to the U.S. Dollar, function as On-Chain Cash Equivalents. Allowing Trades to be Funded with Stablecoins, would enable Fully Atomic Transactions, where Payment and Delivery occur Simultaneously. This Stands in Contrast to Current Market Structures, where Cash and Securities Flow through Separate, often Fragmented Systems. For Institutional Investors, this could Simplify Treasury Operations and Improve Capital Efficiency, though it also Raises Questions about Interoperability with Existing Banking Infrastructure.
For Companies considering Listing on such a Platform, the Implications are both Strategic and Structural. Tokenized Issuance could Lower Barriers to Capital Formation by Streamlining Issuance, Recordkeeping, and Investor Access. Corporate Actions such as Dividends, Stock Splits, and Voting could, in Theory, be Automated through smart contracts, reducing administrative complexity and cost. Moreover, continuous trading might broaden the investor base, particularly among international and Digitally Native Investors who are already Comfortable with Blockchain-Based Assets.
However, these Benefits come with New Considerations. Continuous Markets may Increase Volatility, as Prices respond immediately to News Events at any hour. Issuers would need to Adapt their Investor-Relations Strategies to a World where Naterial Information can be Reflected in Prices Overnight or during Weekends. Governance and Disclosure Standards would also need to remain Rigorous, as Regulators and Market Participants seek Assurance that Tokenized Securities offer the same Protections as their traditional Counterparts.
The NYSE’s Initiative must also be understood within a broader institutional context. Major Financial Firms have already begun Tokenizing Cash like Instruments, including Money-Market Funds, suggesting that the Building Blocks of an on-Chain Financial system are being laid Incrementally. The Involvement of Intercontinental Exchange, the NYSE’s Parent Company, adds weight to the Effort, Signaling that Tokenization is being Pursued as a Core Strategic Priority, rather than an Experimental Side Project. Ongoing Engagement with the Securities and Exchange Commission (SEC) will Ultimately Determine the Pace and Scope of Adoption, but the Direction is Clear.
In Aggregate, the NYSE’s Plan reflects a Convergence between Traditional Finance and Blockchain Technology that has long been anticipated but only recently begun to materialize at scale. Rather than Displacing existing Markets, Tokenization appears poised to Augment them, Modernizing Settlement, Expanding Access, and Aligning Market Infrastructure with the Realities of a Digital, Global Economy.
For Investors, this Promises Ggeater Flexibility and Potentially Lower Risk. For Issuers, it offers New Tools for Capital Formation and Shareholder Engagement. Whether these Benefits are Fully realized will Depend on Regulatory Clarity and Market Acceptance, but the Involvement of the World’s most Prominent Eexchange suggests that Tokenized Securities are moving Decisively from Theory into Practice.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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