Galaxy Digital received a BitLicense and Money Transmission License from the New York State Department of Financial Services on May 18, 2026, authorizing its subsidiary GalaxyOne Prime NY to offer regulated crypto trading and custody services to institutional clients across the state.

The approvals target New York's densest cluster of institutional capital. Under the licenses, registered investment advisors, hedge funds, and family offices in New York can now access Galaxy's full suite of trading and custody services directly — without routing through out-of-state or offshore entities.

"New York is home to the deepest pool of institutional capital in the country, and digital assets are no longer sitting at the edge of those allocations," CEO Mike Novogratz said in the company's announcement. "Galaxy was built to meet that demand, and now we can better serve New York's institutions directly." The quote appears verbatim in Galaxy's press release (PRNewswire release 302774358, May 19, 2026). Galaxy's digital asset business currently manages $9 billion in client assets, a figure stated in the same release.

The BitLicense is NYDFS's framework for virtual currency businesses operating in New York, introduced in 2015. It requires applicants to meet capital requirements, demonstrate AML and cybersecurity controls, and submit to ongoing NYDFS examination. The process is lengthy and expensive — a significant number of early applicants withdrew rather than complete it — which is why holders remain a relatively short list compared to the number of crypto firms that operate nationally. Galaxy is the second firm to receive a BitLicense in 2026, following Strike's approval in March, according to CoinDesk's May 18 reporting.

The New York approval adds to what Galaxy describes as more than 50 regulatory licenses globally. For institutional clients in New York, the practical effect is access to a regulated local counterparty for digital asset transactions — relevant in an environment where fiduciaries face compliance pressure around where and through whom they trade.

Sources