Galaxy Digital Wins New York BitLicense for Expansion

TLDR

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Galaxy Digital secured a BitLicense and money transmitter license from the New York State Department of Financial Services.
The approval allows GalaxyOne Prime NY to offer regulated crypto trading and custody services across New York.
Galaxy Digital said its platform manages about $9 billion in client assets.
Mike Novogratz stated that digital assets are becoming part of institutional allocations in New York.
Galaxy Digital became the second company to receive a BitLicense in 2026 after Strike.

Galaxy secured regulatory approval in New York to expand its institutional crypto services. The New York State Department of Financial Services granted the company a BitLicense and a money transmitter license. The decision allows Galaxy to operate regulated trading and custody services across the state.

Galaxy Digital Gains NYDFS Approval for Trading and Custody

Galaxy Digital received a BitLicense from the New York State Department of Financial Services. The regulator also issued a money transmitter license to GalaxyOne Prime NY. As a result, the company can provide regulated crypto trading and custody services statewide.

The approval enables Galaxy Digital to serve hedge funds and registered investment advisors in New York. It also allows the firm to work with family offices seeking digital asset exposure. The company said its platform manages about $9 billion in client assets.

Mike Novogratz, founder and CEO of Galaxy, addressed the expansion in a statement. He said, “New York is home to the deepest pool of institutional capital in the country.” He added, “Digital assets are no longer sitting at the edge of those allocations.”

Galaxy Digital operates more than 50 licenses worldwide. The company continues to build infrastructure for institutional digital asset trading. It also develops services linked to artificial intelligence data centers.

New York BitLicense Framework and Market Context

New York introduced the BitLicense framework in 2015 to regulate crypto businesses. The rules require capital standards, compliance programs, and cybersecurity reviews. Regulators also conduct ongoing supervision of licensed firms.

The licensing process has drawn criticism from parts of the crypto industry. However, regulators continue to grant approvals to selected firms. Galaxy Digital became the second company to receive a BitLicense in 2026.

Bitcoin payments firm Strike secured its approval from NYDFS in March 2026. Strike’s authorization allowed it to expand its Bitcoin services in New York. The company offers bitcoin purchases and salary conversion into bitcoin.

Strike also plans to expand into bitcoin-backed lending services. Several crypto lenders collapsed during the 2022 market downturn. Celsius, BlockFi, and Genesis filed for bankruptcy during that period.

Galaxy Digital focuses on institutional trading and custody infrastructure. Its approval reflects a separate segment of the crypto market. The company will now operate its institutional platform under direct New York oversight.

The NYDFS decision authorizes GalaxyOne Prime NY to conduct regulated activities in the state. The company confirmed that it will target New York-based institutional investors. Galaxy Digital stated that the platform manages around $9 billion in client assets.

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