On May 18, Galaxy Digital was granted a BitLicense by New York, allowing it to deliver regulated cryptocurrency services to institutional clients.
Summary
- On May 18, 2026, Galaxy Digital’s subsidiary GalaxyOne Prime NY acquired a BitLicense and a Money Transmission License from NYDFS.
- This authorization enables Galaxy to offer regulated trading and custody services to hedge funds, registered investment advisers, and family offices across New York State.
- Galaxy oversees approximately $9 billion in client assets, and New York enhances its regulatory framework with over 50 global licenses.
Galaxy Digital reported 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 provide regulated trading and custody solutions for digital assets to institutions in New York, including registered investment advisers, hedge funds, and family offices, operating a platform that manages around $9 billion in client assets.
“New York represents the largest pool of institutional capital in the nation, and the integration of digital assets is becoming increasingly significant in those investments,” said Mike Novogratz, the founder and CEO of Galaxy.
Implications of Galaxy Digital’s BitLicense
Galaxy is the second firm to acquire a BitLicense in 2026, following the bitcoin payments company Strike, which received NYDFS approval in March.
The regulatory framework, established in 2015, stands as one of the most stringent crypto licensing systems in the U.S., requiring capital thresholds, ongoing compliance assessments, and cybersecurity monitoring. To date, only about 40 companies have received approval. Now, New York adds to Galaxy’s extensive network of over 50 global licenses.
According to crypto.news, Galaxy’s head of research, Alex Thorn, has been closely tracking institutional Bitcoin investments throughout 2026. The New York BitLicense provides Galaxy’s trading and custody platform with direct access to institutions involved in these investments, located in a state that is home to the highest concentration of hedge funds and investment advisers in the U.S.
The Significance of New York for Institutional Crypto
Prominent BitLicense holders include companies like Coinbase, Robinhood, Circle, and PayPal, indicating that Galaxy’s recent approval shows that NYDFS continues to selectively permit crypto firms. In its 2025 coverage of Galaxy’s Q2 performance, crypto.news highlighted the firm’s efforts to enhance its data center and AI capabilities alongside its digital asset platform.
The New York license now provides access to one of the largest pools of institutional assets globally for a firm that achieved strong results in Global Markets last year and has greatly expanded its data center operations.
After the announcement, Galaxy’s shares dropped 2.36% to $28.91 in pre-market trading on Monday, reflecting broader market declines on that day.
