Tokenized equities are gaining new practical utility as Broadridge prepares to offer on-chain proxy voting to holders of tokenized shares in Galaxy (GLXY). The vote is scheduled for May and will be conducted through Broadridge’s tokenized governance platform, which runs on the company’s own Avalanche-powered layer-1 network. The development marks a concrete step toward integrating traditional shareholder rights into blockchain-based financial infrastructure.
Galaxy CEO and founder Mike Novogratz described the initiative as a meaningful advance for tokenized capital markets. He stated that proxy voting is a core feature of equity ownership and that bringing it on-chain for a public company is no longer a theoretical exercise. Novogratz has previously expressed a long-held belief that tokenization will fundamentally reshape capital markets.
Broadridge will connect its ProxyVote platform to digital wallets, allowing investors to submit votes and receive investor materials directly through those interfaces. Broadridge CEO Tim Gokey emphasized that accurate, scalable, and cost-effective governance is increasingly critical to supporting the expansion of tokenized equities. The integration is intended to make shareholder participation more accessible within a digital asset framework.
The announcement arrives amid broader momentum in the tokenized equities space. Earlier in April, the Nasdaq received formal approval from the United States Securities and Exchange Commission (SEC) to trade tokenized stocks through a pilot program. Major crypto firms including Coinbase, Kraken, and Binance have also launched their own tokenization initiatives aimed at bridging digital assets with more traditional financial products.
However, the rapid growth of tokenized finance is drawing regulatory attention. The International Monetary Fund (IMF) issued a warning earlier in the week, cautioning in a new report that the expansion of tokenized finance could amplify the effects of a financial crisis. The report signals that international institutions are monitoring the sector closely as it scales. The caution adds a note of complexity to what has otherwise been a period of accelerating adoption.
Shares of both companies moved higher following the news. Broadridge stock rose 0.8%, trading at $161.91, while Galaxy shares climbed 1.79% to $17.96. Representatives for neither firm responded immediately to requests for comment on the development.
Originally reported by Decrypt.
