Since Robinhood (HOOD) has been pushing further into the world of crypto and taking on industry giants like Coinbase (COIN), it was probably only a matter of time before digital asset companies flipped the script and took on Robinhood on its own turf.
That moment came on Monday when Galaxy Digital (GLXY) announced the launch of GalaxyOne, a fintech platform app offering investors brokerage services, cash deposit accounts, and commission-free trading.
After having built its name in the institutional crypto space, this is Galaxy’s first move into consumer finance. The app is being offered to US-based investors.
The company will be offering four products through the GalaxyOne app: Galaxy Premium Yield, GalaxyOne Cash, GalaxyOne Crypto, and GalaxyOne Brokerage.
While GalaxyOne is positioning the company in the same consumer finance market as Robinhood, the company is actually targeting accredited investors, which differentiates it from the retail-focused Robinhood app.
“This is a sophisticated tool for more sophisticated, mature investors,” Michael Wursthorn, a Galaxy spokesperson, explained to Barron’s. “We’re not building this for necessarily the day-trading crowd.”
The Galaxy Premium Yield product bears this out.
It offers an 8% yield through an investment note issued by Galaxy Digital LP, but with a $25,000 investment minimum. There is a $1 million cap per investor and an initial $250 million total investment cap.
The yield is generated through Galaxy’s institutional lending business, accruing daily and paid monthly into an investor’s GalaxyOne Cash account.
Galaxy goes full service with its offerings
"We've spent years building institutional-quality infrastructure to serve the world's most sophisticated investors,” Mike Novogratz, founder and CEO of Galaxy, said in a statement. “Now, we're extending that edge to individuals.”
Novogratz added that GalaxyOne allows the company to become “a full-spectrum financial services provider.”
In addition to digital asset trading that can be done through its GalaxyOne Crypto product, investors will also be able to access commission-free trading of more than 2,000 U.S. stocks and ETFs through its GalaxyOne Brokerage product.
The company is also offering retirement accounts through its brokerage platform.
GalaxyOne was originally called Fierce, which was a retail-focused financial app that Galaxy acquired from Fierce Technology in 2024. The company was founded by Rob Cornish, former CIO of the New York Stock Exchange (NYSE) and former CTO of digital asset firm Gemini.
Cornish will serve as CTO of GalaxyOne, while Zac Prince, a managing director at Galaxy, will oversee its operations.
Prince was previously the co-founder and CEO of BlockFi, the digital asset wealth management platform that went bankrupt after the collapse of cryptocurrency exchange FTX. BlockFi ultimately paid a $100 million settlement to the SEC after the regulator charged the company with failing to register its crypto lending business.
In an interview on Monday with Bloomberg, Prince said that he “learned a ton from BlockFi” and that his personal and professional risk appetites are “much more conservative now, obviously based on the experiences that we had.”
Galaxy’s stock gained 7.4% on news of the GalaxyOne launch.
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