On May 18, Galaxy Digital acquired a BitLicense from New York, allowing it to deliver regulated cryptocurrency services to institutional clients.

Galaxy Digital announced on May 18 that its subsidiary GalaxyOne Prime NY has obtained a BitLicense and a Money Transmission License from the New York State Department of Financial Services.

These licenses allow Galaxy to deliver regulated trading and custody services for digital assets to institutions in New York, including registered investment advisers, hedge funds, and family offices, operating on a platform that oversees around $9 billion in client assets.

“New York is home to the largest pool of institutional capital in the nation, and digital assets are increasingly becoming an integral part of those investments,” said Mike Novogratz, founder and CEO of Galaxy.

Implications of Galaxy Digital’s BitLicense

Galaxy is now the second firm to secure a BitLicense in 2026, following the bitcoin payments company Strike, which received NYDFS approval in March.

The framework, which was established in 2015, is one of the most stringent crypto licensing systems in the U.S., requiring capital minimums, ongoing compliance assessments, and cybersecurity measures. To date, only about 40 companies have successfully obtained this approval. With this new license, New York further strengthens Galaxy’s regulatory network encompassing over 50 global licenses.

According to crypto.news, Galaxy’s research head Alex Thorn has been closely observing institutional Bitcoin allocations throughout 2026. The New York BitLicense provides Galaxy’s trading and custody platform with direct access to institutions responsible for those allocations, located in a state that hosts the highest concentration of hedge funds and investment advisers in the country.

The Significance of New York for Institutional Crypto

Notable BitLicense holders include major firms like Coinbase, Robinhood, Circle, and PayPal, indicating that Galaxy’s approval suggests that NYDFS continues to carefully permit crypto firms. In 2025, during its coverage of Galaxy’s Q2 results, crypto.news highlighted that the firm has been enhancing its data center and AI capabilities alongside its digital asset platform.

The New York license now grants access to one of the largest institutional asset pools globally for a firm that achieved remarkable results in Global Markets last year and has significantly developed its data center operations.

Following the approval, Galaxy’s shares experienced a drop of 2.36% to $28.91 in pre-market trading on Monday, reflecting broader market weaknesses on that day.