Galaxy Digital Expands Influence in Liquid Staking via Alluvial Acquisition

Galaxy Digital Expands into Liquid Staking

In a significant move within the rapidly evolving digital assets landscape, Galaxy Digital Inc. has announced its acquisition of Alluvial Finance, the former development firm behind Liquid Collective. This strategic acquisition positions Galaxy as the official Development Company for the prominent liquid staking protocol, Liquid Collective, further cementing its leadership in this burgeoning sector.

Liquid staking has emerged as a pivotal innovation in the digital finance ecosystem, allowing investors to earn rewards while retaining the liquidity of their staked assets. Since its launch in 2023, Liquid Collective has gained traction, helping institutional investors stake assets like Ethereum and Solana while receiving liquid tokens. These tokens represent their staked positions and can be utilized in various decentralized finance (DeFi) applications. As of 2025, Liquid Collective has experienced remarkable growth, tripling its assets under management to about $1 billion.

Galaxy Digital's acquisition of Alluvial amplifies its mission to provide comprehensive trading and investment services tailored for institutions engaging in the on-chain market. With this transition, Galaxy takes full responsibility for the development and upkeep of the Liquid Collective protocol, integrating Alluvial's team of experienced on-chain engineers and a suite of innovative technologies that enhance the staking process.

Michael Novogratz, the Founder and CEO of Galaxy Digital, expressed enthusiasm about this venture. He stated, "Galaxy has always built the infrastructure institutions need to operate confidently on-chain—from trading and custody to lending and staking. Becoming Liquid Collective's Development Company is a natural extension of that mission." This acquisition not only expands Galaxy's digital infrastructure but also signifies its commitment to the next generation of institutional staking products, ensuring access to non-custodial staking solutions worldwide.

In his remarks, Chris Matta, CEO of Liquid Collective, highlighted the importance of the partnership stating, "Liquid Collective was built to give institutions a safe, transparent, and enterprise-grade path into liquid staking. Galaxy stepping in as our Development Company builds on that foundation." The collaboration is expected to bolster product innovation and broaden institutional access to compliant liquid staking opportunities globally.

Galaxy Digital, managing approximately $6.6 billion in assets under stake, stands as one of the largest platforms for institutional trading, lending, and staking. With a suite of services including instant in-kind liquidity across key blockchain networks, Galaxy caters to over 1,200 institutional clients around the world. The integration of Alluvial's capabilities positions Galaxy not just as a service provider but as a pivotal player in shaping the future of digital finance.

Furthermore, Liquid Collective will maintain its independent operations under The Liquid Foundation (TLF). Established to ensure neutrality and transparency, TLF aims to expand its governance framework by inviting various institutional stakeholders to participate in overseeing and nurturing the growth of Liquid Collective. This collective governance structure is poised to attract additional entities like digital-asset trusts and exchanges, enhancing the overall ecosystem of liquid staking.

As Galaxy Digital continues to innovate within the institutional staking landscape, industry observers are closely watching how these developments will unfold. The acquisition of Alluvial Finance and the subsequent strategic enhancements to the Liquid Collective protocol are seen as a crucial step in refining the institutional investment process in the digital asset space, promising new avenues for growth and participation in this exciting sector.