Crypto venture capital firm and trading desk, Galaxy Digital Holdings, has been granted conditional approval to participate in the Toronto Stock Exchange’s TSX Sandbox.

Announced during April last year, TSX’s sandbox offers a testing ground for new policy development, and an initiative intended to facilitate support for listing applications “that may not generally satisfy the requirements and guidelines of TSX.”

Galaxy will graduate from the sandbox onto TSX after 12 months of trading without the occurrence of “a significant compliance issue.”

Galaxy Digital enters TSX Sandbox

Galaxy Digital founder and chief executive, Mike Novogratz, described its entrance into the sandbox as a “significant step in [its] evolution as a public company.”

The sandbox has exercised discretion in waiving the requirement of CAD 10 million (approximately $7.1 million) in treasury garnered through public raise — which Galaxy Digital did not meet.

“Our proposed graduation to the TSX comes as the company continues to make great strides in execution across all of our business lines,” said Galaxy Digital president, Christopher Ferraro.

“Our trading desk executed approximately $1 billion of total volume in the most recent quarter, including flows from significant new hedge fund counterparties moving into crypto, while our asset management business continues to see strong fund inflows to its Bitcoin Fund,” Ferraro added.

In September 2019, Canadian crypto mining firm, Hut 8, became the first company to be granted conditional approval for TSX graduation via the stock exchange’s sandbox.

Galaxy Digital to graduate from TSX Venture

The sandbox program will allow Galaxy Digital to graduate from TSX’s Ventures platform to the exchange’s most senior public market.

Galaxy Digital commenced trading on TSX Ventures at the start of August 2018, where it would commence trading at roughly $2.05 before shedding 65% over the rest of the year and tagging a low of $0.70.

GLXY/USD: TradingView

Galaxy Digital recovered by 150% from late December 2018 through Q1 2019, before embarking on a 12-month slide down to a record low of $0.52 during March 2020. Bullish activity in the crypto markets has driven a 100% recovery over the past month — with Galaxy Digital currently trading for $1.05.