Galaxy Digital Obtains BitLicense in New York
On May 18, Galaxy Digital successfully acquired a BitLicense from New York, allowing it to deliver regulated cryptocurrency services to institutional clients.
Summary
- On May 18, 2026, Galaxy Digital’s subsidiary GalaxyOne Prime NY was granted a BitLicense and a Money Transmission License by NYDFS.
- This authorization enables Galaxy to provide regulated trading and custody services for digital assets to hedge funds, registered investment advisors, and family offices across New York State.
- With around $9 billion in client assets under management, New York enhances its regulatory framework with over 50 international licenses.
Galaxy Digital announced on May 18 that its subsidiary GalaxyOne Prime NY has received a BitLicense and a Money Transmission License from the New York State Department of Financial Services.
These licenses allow Galaxy to deliver regulated trading and custody services for digital assets to institutions in New York State, such as registered investment advisors, hedge funds, and family offices, on a platform overseeing approximately $9 billion in client assets.
“New York boasts the largest pool of institutional capital in the country, and digital assets are increasingly becoming part of those investment allocations,” stated Mike Novogratz, Galaxy’s founder and CEO.
Galaxy Digital’s BitLicense and Its Implications
Galaxy is now the second firm to secure a BitLicense in 2026, following bitcoin payments company Strike, which obtained NYDFS approval in March.
The licensing framework, established in 2015, is known for being one of the most rigorous crypto licensing systems in the U.S., requiring minimum capital, continuous compliance assessments, and cybersecurity oversight. Since its inception, only about 40 companies have received approval. This new license adds to Galaxy’s regulatory portfolio of over 50 global licenses.
As reported by crypto.news, Galaxy’s research head Alex Thorn has been closely monitoring institutional Bitcoin allocations throughout 2026. The New York BitLicense provides Galaxy’s trading and custody platform with direct access to the institutions that handle those allocations, located in a region that contains the largest concentration of hedge funds and investment advisors in the U.S.
The Importance of New York for Institutional Crypto
BitLicense holders include well-known firms like Coinbase, Robinhood, Circle, and PayPal, indicating that Galaxy’s approval suggests that 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 abilities alongside its digital asset platform.
The New York license now provides access to one of the globe’s largest institutional asset pools for a firm that demonstrated outstanding results in Global Markets last year and has significantly broadened its data center operations.
Following the announcement, Galaxy’s shares dropped 2.36% to $28.91 in pre-market trading on Monday, reflecting broader market declines that day.