Galaxy Digital Obtains BitLicense in New York

On May 18, Galaxy Digital obtained a BitLicense from New York, allowing it to deliver regulated crypto services to institutional clients.

Galaxy Digital announced on May 18 that its subsidiary GalaxyOne Prime NY acquired a BitLicense and a Money Transmission License from the New York State Department of Financial Services.

These licenses empower Galaxy to offer regulated trading and custody services for digital assets to institutions in New York State, including hedge funds, registered investment advisers, and family offices, on a platform that oversees around $9 billion in client assets.

“New York harbors the most significant pool of institutional capital in the nation, and digital assets are increasingly becoming part of those investments,” remarked Mike Novogratz, the founder and CEO of Galaxy.

The Implications of Galaxy Digital’s BitLicense

Galaxy is now the second company to secure a BitLicense in 2026, following the bitcoin payment firm Strike, which received NYDFS approval in March.

The framework, established in 2015, ranks among the strictest crypto licensing systems in the U.S., requiring minimum capital, ongoing compliance assessments, and cybersecurity oversight. Since its initiation, approximately 40 companies have received approval. New York enhances Galaxy’s regulatory framework, now encompassing over 50 global licenses.

According to crypto.news, Galaxy’s research lead Alex Thorn has been actively tracking institutional Bitcoin investments throughout 2026. The New York BitLicense grants Galaxy’s trading and custody platform direct access to the institutions responsible for these investments, located in a state that houses the largest concentration of hedge funds and investment advisers in the U.S.

The Significance of New York for Institutional Crypto

BitLicense holders comprise notable firms like Coinbase, Robinhood, Circle, and PayPal, suggesting that Galaxy’s approval indicates that the NYDFS continues to selectively permit crypto companies. In its 2025 coverage of Galaxy’s Q2 results, crypto.news highlighted that the firm has been enhancing its data center and AI capacities alongside its digital asset platform.

The New York license now grants access to one of the largest institutional asset pools in the world for a firm that demonstrated strong results in Global Markets last year and has significantly expanded its data center operations.

After the approval, Galaxy’s shares dropped 2.36% to $28.91 in pre-market trading on Monday, reflecting broader market declines on that day.