Galaxy Digital, a crypto-focused financial services firm for institutions, unveiled a platform for individual investors on Monday, putting it in direct competition with platforms like Kraken and Robinhood that offer both cryptocurrency and equities trading.
The service, called GalaxyOne, has a dedicated mobile app, the company said in a press release, while highlighting features that it thinks could chip away at an industry dominated by a handful of firms in the U.S., such as “premium” yield for accredited investors.
Galaxy is aiming for a middle ground between financial institutions with billions of dollars in assets under management and accounts belonging to individuals that have less than $1,000, Galaxy’s Managing Director, Zac Prince, told Decrypt.
“We’re not necessarily trying to jump all the way down to that, but we think there’s a really interesting opportunity and a compelling product set that we can build for that ‘accredited investor’ profile,” he said, noting Galaxy’s reputation as a white-glove service provider.
The premium yield product offers 8% APY (annualized percentage yield), which, to be sure, is only available to accredited investors. That means around 12.6% of Americans would qualify, according to an SEC report published in June.
The platform is also offering 4% APY through “GalaxyOne Cash,” which doesn’t have the same restrictions. Through banking services provided by Cross River Bank, Galaxy says the product entails high-yield cash deposits accounts that are FDIC insured.
That’s different from accounts on crypto exchanges, which are not considered traditional deposit accounts, but may offer rewards on stablecoins that resemble yield.
In some ways, GalaxyOne has restrictions that competitors don’t. It says it offers trading on only three “blue-chip” digital assets: Bitcoin, Ethereum, and Solana. Through its commission-free brokerage accounts, Galaxy says users can access thousands of U.S.-listed stock and exchange-traded funds.
GalaxyOne stems from Galaxy’s acquisition of retail-focused financial application Fierce last year. Galaxy disclosed that it bought the firm for $12.5 million in fourth-quarter financial statements filed with the SEC.