Galaxy Digital Obtains BitLicense in New York

On May 18, Galaxy Digital obtained a BitLicense from New York, allowing it to offer regulated cryptocurrency services to institutions.

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

These licenses permit Galaxy to deliver regulated trading and custody services for digital assets to New York State institutions, including registered investment advisors, hedge funds, and family offices, on a platform managing around $9 billion in client assets.

“New York is home to the most significant pool of institutional capital in the country, and digital assets are increasingly becoming a part of those allocations,” remarked Mike Novogratz, the founder and CEO of Galaxy.

Galaxy Digital’s BitLicense and Its Implications

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

The framework, initiated in 2015, stands out as one of the strictest crypto licensing systems in the U.S., requiring capital minimums, ongoing compliance assessments, and cybersecurity measures. Since its launch, only about 40 companies have gained approval. Now, New York enhances Galaxy’s regulatory framework with over 50 global licenses.

According to crypto.news, Galaxy’s research lead, Alex Thorn, has been closely tracking institutional Bitcoin allocations throughout 2026. The New York BitLicense provides Galaxy’s trading and custody platform with direct access to the institutions managing those allocations, located in a state with the largest concentration of hedge funds and investment advisors in the U.S.

The Importance of New York for Institutional Crypto

BitLicense holders encompass notable firms such as Coinbase, Robinhood, Circle, and PayPal, indicating that Galaxy’s approval reflects NYDFS’s continued selective permitting of crypto enterprises. In its 2025 coverage of Galaxy’s Q2 outcomes, crypto.news highlighted that the firm has been enhancing its data center and AI capabilities alongside its digital asset platform.

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

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