Mike Novogratz's Galaxy expands into consumer finance, challenging Coinbase, SoFi, and Robinhood

Galaxy Digital Inc. launched GalaxyOne on Monday, describing it as a new financial technology platform for US-based investors to access high-yield cash products, cryptocurrency, and stock trading under “one unified digital experience.” 

GalaxyOne integrates four main products, namely Premium Yield, Cash, Crypto, and Brokerage. The app is now available on iOS, Android, and web browsers in the US.

“Proud of the team. Big things ahead as we expand our reach and unlock the next phase of growth,” CEO Mike Novogratz said on X Monday morning, announcing the new product.

At launch, investors who complete know-your-customer (KYC) verification will be able to buy, hold, and transfer cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and Paxos Gold (PAXG). 

The platform also allows clients to earn interest on cash deposits and automatically reinvest their earnings, compounding them into crypto assets or back into cash.

Galaxy Digital lists GalaxyOne subscription tiers

According to a statement from Zac Prince, the head of product, the platform’s Premium Yield product offers accredited investors an 8.00% Annual Percentage Yield (APY) through an investment note issued by Galaxy Digital LP, a subsidiary of Galaxy Digital Inc. 

Galaxy’s institutional lending business powers the APY yield, and each investment in the Premium Yield program requires a minimum of $25,000, capped at $1 million per investor with an overall cap of $250 million. Interest accrues daily and is paid monthly into the investor’s GalaxyOne Cash account. 

All users will have access to the GalaxyOne Cash product, offering a 4.00% APY on high-yield deposits, insured up to $250,000 through Cross River Bank, a member of the Federal Deposit Insurance Corporation (FDIC). 

Interest can be set to reinvest automatically for users to accumulate additional cash or convert earnings into Bitcoin or other supported digital assets.

The company told news publications that the GalaxyOne Brokerage feature has commission-free trading for more than 2,000 US stocks and exchange-traded funds (ETFs). It also supports fractional share purchases starting at $10 and includes options for traditional and Roth IRA accounts. 

Clients can also lend eligible stocks through GalaxyOne’s Stock Lending program to earn passive income.

Galaxy, through its new product, can now compete with Coinbase Global, SoFi Technologies, and Robinhood Markets that have similar brokerage services for digital currencies, albeit on a much larger scale. 

Galaxy Digital CEO: GalaxyOne serves investors with institutional-quality standards

Galaxy CEO Mike Novogratz said the launch comes from years of preparation to bring institutional-quality infrastructure to retail investors.

“We’ve spent years building institutional-quality infrastructure to serve the world’s most sophisticated investors,” Novogratz said. “Now, we’re extending that edge to individuals. GalaxyOne advances our mission of becoming a full-spectrum financial services provider that builds trusted, regulated, and accessible products for all market segments.”

The CEO also mentioned that since it was founded in 2018, Galaxy’s ambition was to become a comprehensive traditional finance and crypto investment platform, with blockchain-based solutions.

As reported by Cryptopolitan, the New York-based capital market company went public on the Nasdaq in May and now operates a mining and data center division. It is also currently building a massive campus in West Texas to capitalize on the growth of AI and blockchain infrastructure industries.

GalaxyOne’s idea was first pitched by Fierce, a finance super-app that Galaxy acquired in December 2024 for $12.5 million. According to Galaxy’s quarterly financial report, the acquisition included both the technology platform and the team behind it.

The market reacted positively to Monday’s announcement, with Galaxy Digital’s stock rising 8% to trade at $39.29 in Monday’s premarket trading, per Google Finance. As of Friday’s close, the company’s shares had gained 109% year-to-date.

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