Galaxy Digital Is Keen on European Expansion As The Firm Hires First Regional Head
Digital asset services firm, Galaxy Digital seeks an international expansion to Europe with the addition of a regional chief.
Mike Novogratz’s crypto firm has hired Leon Marshall, the company’s former head of sales as its first-ever European Chief Executive, setting the tone for a possible expansion.
Marshall, who has been with Galaxy Digital and previously worked with crypto broker Genesis is tasked with building a regional operation in Europe as the firm sets sights on expanding all five arms.
The need for expansion comes amid the bearish outlook in the digital asset market forcing executives to think for themselves as they hope to survive through the winter.
Marshall has stated the progress marked in Europe in terms of regulation is a main factor in the firm’s decision to set up shop in the continent.
According to Mike Novogratz, the decision is part of the plan to open up new opportunities globally.
“to aggressively scale our operations in the U.K. and Europe – a region that has committed to embracing the digital asset future and creating the necessary regulatory frameworks for our industry to operate within,” he added.
Last month, Galaxy posted narrow Q2 losses of $46 million, a significant drop from the previous year’s $555 million. Notably the firm records an uptick in trading revenues at $59.5 million with a surging asset management arm soaring over 619%.
📉 Galaxy Digital's latest earning report shows a major reduction in losses to $46 million as the cryptocurrency market grows through the second quarter of the year. #CryptoNews https://t.co/iBpgeXdGYE— Cryptonews.com (@cryptonews) August 9, 2023
Despite mining woes, its mining division posted increasing revenues of $15.4 million, 51% higher than the previous quarter. As the firm recovers from the horrors of 2022, a firm foot globally will quicken its rise to the top.
Europe: Every crypto executive’s dream
This year, several crypto executives have hailed Europe as the go-to destination after the region passed the landmark Markets in Crypto Asset (MiCA) regulation.
Europe and the UK have taken steps towards some form of regulation clarity with Prime Minister Rishi Sunak on course to make the country a web3-friendly hub.
On the other hand, the United States market is plagued with regulatory inconsistencies with both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) continuing with bottleneck enforcement and rule-making by courts.
Speaking with the Financial Times, Marshall stressed that MiCA is the game changer for growing European demand.
“The European market demand that we’re seeing, combined with the regulatory framework established by Mica, is robust. That makes Europe a desirable destination for crypto firms to build and grow.”
This month, Coinbase also announced international expansion plans flagging regions like Europe, Brazil, Hong Kong, and the UK as “near-term priorities.”
Reasons cited border on clear rules or efforts to remove barriers in the market to protect all parties.