Galaxy Digital Secures New York BitLicense, Opening Access to Institutional Crypto Platform with About $9B in Assets

Galaxy Digital said May 18 that the New York Department of Financial Services (NYDFS) has issued its subsidiary, GalaxyOne Prime NY, both a BitLicense and a Money Transmission License. The approvals allow the firm to provide regulated digital-asset trading and custody services to institutional clients statewide, including registered investment advisers, hedge funds and family offices, through a platform overseeing roughly $9 billion in client assets. CEO Mike Novogratz said New York represents the nation's deepest pool of institutional capital and that digital assets are increasingly becoming part of those portfolios, positioning the licenses as a strategic entry into a highly concentrated allocator base. The BitLicense framework, introduced in 2015, is among the toughest U.S. regulatory regimes for crypto firms, featuring capital requirements, ongoing compliance examinations and cybersecurity oversight. Roughly 40 companies have been approved since launch, highlighting the selectivity of NYDFS. With the new authorization, Galaxy gains a direct pathway to the largest cluster of U.S. hedge funds and investment advisers. The firm also noted that its research team, led by Alex Thorn, has been monitoring institutional allocators as key drivers of Bitcoin and broader crypto allocations through 2026. Galaxy is the second company to receive a BitLicense in 2026, following payments firm Strike in March. It joins a list of prominent license holders including Coinbase, Robinhood, Circle and PayPal. The approvals also extend Galaxy's regulatory reach, which the company said now includes more than 50 licenses globally. The development comes as Galaxy expands datacenter and AI infrastructure alongside its digital-asset platform. The New York clearance brings one of the world's largest institutional capital pools within reach of a company that reported record Global Markets results last year and has been scaling its datacenter operations. Market reaction was subdued. Galaxy shares fell 2.36% to $28.91 in Monday premarket trading, in line with broader market weakness. NYDFS approval strengthens Galaxy's ability to compete for institutional trading and custody mandates in the most important U.S. market for asset managers and hedge funds as institutional crypto adoption continues to advance.