Major Crypto Firm Secures Crucial Regulatory Approval to Broaden Empire in the Empire State

In a significant development, Galaxy Digital has obtained the necessary regulatory greenlight from the New York State Department of Financial Services, paving the way for the company to broaden its institutional cryptocurrency offerings within the state. This milestone was achieved through the issuance of a BitLicense and a money transmitter license to GalaxyOne Prime NY, thereby permitting the firm to provide a range of regulated trading and custody services to clients across New York.

The approval is expected to have far-reaching implications for Galaxy Digital, enabling the company to cater to a diverse array of institutional clients, including hedge funds, registered investment advisors, and family offices seeking to gain exposure to digital assets. According to the company, its platform currently oversees approximately $9 billion in client assets, underscoring the significant potential for growth and expansion in the New York market.

Commenting on the development, Mike Novogratz, the founder and CEO of Galaxy Digital, emphasized the importance of the New York market, noting that it is home to the largest pool of institutional capital in the United States. He also observed that digital assets are increasingly becoming an integral part of institutional investment allocations, rather than being relegated to the periphery.

With over 50 licenses in operation worldwide, Galaxy Digital is well-positioned to capitalize on the growing demand for institutional digital asset trading infrastructure. The company is also actively engaged in the development of services linked to artificial intelligence data centers, further solidifying its position as a leading player in the crypto space.

The BitLicense framework, introduced by New York in 2015, has been instrumental in regulating cryptocurrency businesses operating within the state. The framework mandates strict capital standards, compliance programs, and cybersecurity reviews, in addition to ongoing supervision by regulatory authorities. While the licensing process has been criticized by some segments of the crypto industry, regulators continue to grant approvals to select firms that meet the stringent requirements.

Notably, Galaxy Digital is the second company to receive a BitLicense in 2026, following in the footsteps of Bitcoin payments firm Strike, which secured its approval in March 2026. The latter's authorization enabled it to expand its Bitcoin services in New York, including bitcoin purchases and salary conversion into bitcoin, with plans to venture into bitcoin-backed lending services in the future.

In contrast to some crypto lenders that collapsed during the 2022 market downturn, including Celsius, BlockFi, and Genesis, Galaxy Digital has focused on building institutional trading and custody infrastructure, reflecting a distinct segment of the crypto market. The company's approval is expected to facilitate the operation of its institutional platform under direct New York oversight, with GalaxyOne Prime NY authorized to conduct regulated activities in the state.