Novogratz’s Galaxy Digital launches retail app to rival Robinhood

Galaxy Digital shares surged by 7% on Monday following the launch of their new trading platform, GalaxyOne. Led by CEO Mike Novogratz, the digital assets investment firm introduced a Robinhood-like platform that allows users to trade over 2,000 stocks, exchange-traded funds, and cryptocurrencies such as bitcoin and ether. GalaxyOne also offers yield-bearing accounts with a 4% annual percentage yield on cash deposits and an 8% yield investment note for accredited investors.

The launch of GalaxyOne comes at a time when cryptocurrencies and blockchain technology are disrupting the traditional financial system. Novogratz believes that stablecoins will eventually replace bank deposits and credit. In an interview on CNBC’s “Squawk Box,” he expressed his vision for GalaxyOne to become a one-stop shop for retail investors looking to trade a wide range of traditional and digital assets in a single platform.

Cantor Fitzgerald noted that Galaxy’s expansion into retail-focused services is a strategic move to compete with popular financial apps like Robinhood and eToro. The firm has a buy rating on Galaxy’s stock and has set a $45 price target, implying a 24% upside potential from the previous close.

GalaxyOne’s managing director, Zac Prince, clarified that the platform is targeting affluent accredited investors in the U.S. rather than directly competing with Robinhood. However, he acknowledged the competitive nature of the market and the need to differentiate GalaxyOne from other consumer-facing financial apps.

The growing interest in cryptocurrency trading has been fueled by a broader bull run, with digital assets reaching record highs this year. Bitcoin recently hit a new all-time high of around $125,800, reflecting the increasing popularity of cryptocurrencies among investors.

Overall, Galaxy Digital’s launch of GalaxyOne signals a significant step towards providing a comprehensive trading platform for both traditional and digital assets. With a focus on catering to accredited investors and offering competitive yields, GalaxyOne aims to carve out its niche in the evolving landscape of financial technology.