Galaxy Digital Secures New York BitLicense for Crypto Trading and Custody

Galaxy Digital has received a BitLicense and money transmitter license from New York regulators. The approval allows the crypto financial services firm to expand regulated digital asset services. It can now offer trading and custody services to institutional clients in New York.

The New York State Department of Financial Services approved GalaxyOne Prime NY, the company’s New York entity. The license authorizes crypto trading and custody services across the state.

Galaxy Digital Gains Access to New York Institutions

Galaxy Digital said the approval gives New York institutions access to its digital asset platform. The company said the platform manages about $9 billion in client assets.

Eligible clients include hedge funds, registered investment advisors, and family offices. These groups form a major part of New York’s institutional investment base.

The approval gives Galaxy Digital a stronger position in New York’s regulated crypto market. It also shows that state regulators continue to admit selected crypto firms under the BitLicense framework.

The company becomes the second firm to receive a BitLicense in 2026. Bitcoin payments company Strike secured approval from the NYDFS in March.

GalaxyOne Prime NY Gains Approval

GalaxyOne Prime NY will operate under the new approvals. The entity can now provide regulated crypto services to clients in New York.

The approval covers trading and custody services. These products are central for institutions seeking compliant digital asset access.

New York Opens Institutional Access

Mike Novogratz, founder and CEO of Galaxy, said New York holds the deepest pool of institutional capital in the United States. He said digital assets are no longer outside those allocation decisions.

The license gives Galaxy Digital direct access to clients in a state with many hedge funds and investment advisers. It also supports the company’s focus on large investors.

BitLicense Remains Strict

New York introduced the BitLicense framework in 2015. It remains one of the toughest crypto regulatory systems in the United States.

Licensed companies face capital requirements and compliance standards. They are also subject to cybersecurity reviews and continuing regulatory oversight.

The process has faced industry criticism for being costly and difficult. Recent approvals still show that regulators keep opening the market to selected firms.

Strike Approval Set Earlier Marker

Strike became the first company to receive a BitLicense in 2026. Its approval allowed the firm to expand bitcoin services across New York.

Those services included bitcoin purchases, salary conversion into bitcoin, and payments tied to bitcoin balances. Strike also outlined plans for bitcoin-backed lending.

Focus Stays on Trading and Custody

The Galaxy Digital approval covers institutional trading and custody infrastructure. This differs from retail bitcoin payment services offered by Strike.

The company has also expanded beyond digital asset markets. It has been building infrastructure tied to artificial intelligence data centers.

Galaxy said it now holds more than 50 licenses globally. The New York approval adds another regulated market to that network.

Institutional Bitcoin Flows Matter

Galaxy research head Alex Thorn has tracked institutional Bitcoin allocations during 2026. The license gives the firm’s platform access to institutions linked to those flows.

New York remains important because of its investor base. The state has a large concentration of hedge funds and registered investment advisers.

Shares Fall Despite Approval

Galaxy shares fell 2.36% to $28.91 in pre-market trading on Monday. The decline came despite the New York approval.

The move reflected broader market weakness on the day. It also showed that regulatory progress did not prevent near-term pressure on the stock.

Conclusion

Galaxy Digital has gained a key regulatory approval in New York. The BitLicense and money transmitter license allow GalaxyOne Prime NY to serve institutional clients with regulated trading and custody services.

The license strengthens the company’s access to one of the largest U.S. institutional markets. It also places the firm among selected crypto companies operating under New York’s strict regulatory framework.

Appendix Glossary: Key Terms

Money Transmitter License: Approval that allows a firm to move money or digital assets under state rules.

NYDFS: New York State Department of Financial Services, the regulator overseeing the approval.

GalaxyOne Prime NY: Galaxy Digital’s New York entity approved to offer regulated crypto services.

Crypto Custody: Secure storage and management of digital assets for clients.

Institutional Clients: Large investors such as hedge funds, advisers, and family offices.

Digital Asset Platform: A service system used for trading, custody, and crypto market access.

Frequently Asked Questions About Galaxy Digital

1- What did Galaxy receive in New York?

It received a BitLicense and money transmitter license from the NYDFS.

2- What services can GalaxyOne Prime NY offer?

It can offer regulated crypto trading and custody services across New York.

3- Who can access the platform?

Galaxy said hedge funds, registered investment advisors, and family offices can access its platform.

4- Why does the BitLicense matter?

The BitLicense requires compliance, capital standards, cybersecurity reviews, and oversight.

References

CryptoNews

CoinDesk