Novogratz’s Galaxy Digital Digital is launching the retail application to compete with Robinhood

Digital galaxy Actions jumped 7% on Monday after the digital asset investment company led by the CEO Mike Novogratz has unveiled a Robinhood type trading platform, called Galaxyone.

The platform, which launched on Monday, welcomes purchases and sales without commission of more than 2,000 stocks and funds negotiated on the stock market, in addition to the trading of cryptocurrencies such as bitcoin And etherGalaxy Digital said in a press release.

Galaxyone also offers several portable accounts, including an annual percentage of 4% on cash deposits and an 8% return note for accredited investors who set up a minimum of $ 25,000, said the company.

Galaxy actions have more than doubled this year, federal regulators, federal regulators have softened their monitoring of digital assets.

The launch of the trading platform occurs while cryptocurrencies and their underlying blockchains seem ready to disturb the traditional financial system, said Novogratz on “Squawk Box” from CNBC.

“You will see Stablecoins withdraw money from bank deposits … So you will see the credit being replaced,” said Novogratz. “Over time, it will happen.”

In this constantly evolving environment, Galaxyone aims to serve as a one-stop shop for retail investors who seek to exchange a wider range of traditional and digital assets than those available through existing brokerage houses, he added.

“You have a bank account, and you have to change this money elsewhere to buy actions. You have a brokerage account, (but) to buy crypto, you have to go elsewhere,” said Novogratz. “We believe that all will aggregate in one place.”

Cantor Fitzgerald said in a note on Monday to customers that the galaxy foray into retail -focused services reflects its desire to compete with financial services financial services, including Robin And Etoro.

“GLOX, which has historically served only institutional customers, is expanding its scope for the first time,” said Cantor analyst Brett Knoblauch, in the note. “This product, in our mind, will seek to compete with Hood (OW) and Etor (OW).”

The company has a purchase rating on Galaxy actions and has set a price target of $ 45 on shares. This implies an increase of 24% compared to the fence on Friday.

Asked about the question of whether the Galaxy trading platform plans to target Robinhood and the users of its rivals, the general manager of Galaxyone, Zac Prince, said on Monday in an interview with CNBC: “We do not consider the application as something that is currently trying to take Robin Hood on the head.

However, Prince has recognized that Galaxyone is entering a crowded market. “In a sense, we compete with all those who have a consumer -oriented financial application, whether it is finance (decentralized or centralized) or traditional fintech, and we are in competition for Mindshare and attention.”

An increasing number of traders have flocked to crypto in recent months, largely due to a wider bull race which has propelled several prices for digital assets to record the summits this year.

Bitcoin joined a new price of all time of around $ 125,800 on Monday, shortly after exceeding the bar of $ 125,000 for the first time last weekend.