<div id="readability-page-1"><div><div><p>Galaxy Digital has broken through one of the toughest regulatory walls in the US crypto market after securing both a BitLicense and a Money Transmission License from the New York State Department of Financial Services.</p><p>The approvals give the Nasdaq-listed firm direct access to New York’s institutional investors through its subsidiary, GalaxyOne Prime NY, allowing it to offer regulated digital asset trading and custody services across the state.</p><div><div><blockquote><div dir="ltr" lang="en"><p>Galaxy has received a BitLicense and Money Transmitter License from @NYDFS, authorizing us to serve institutional clients across New York State.</p><p>The deepest pool of institutional capital in the country now has direct access to our full trading and custody platform.…</p></div>— Galaxy (@galaxyhq) May 18, 2026</blockquote></div></div><p>For years, many crypto firms either avoided New York entirely or relied on offshore structures and intermediaries to serve clients there because of the state’s demanding compliance standards. </p><p>Galaxy’s approval now places the company among a small group of firms legally authorised to operate crypto services in one of the world’s most closely watched financial markets.</p><h2>Why New York’s BitLicense Still Carries Weight</h2><p>Since its launch in 2015, the BitLicense has developed a reputation as one of the strictest crypto regulatory frameworks in the United States.</p><p>Companies seeking approval must satisfy extensive anti-money laundering controls, cybersecurity requirements, capital reserve rules, and consumer protection standards before they are allowed to operate.</p><p>The process has also been criticised for being expensive and time-consuming.</p><div><div><blockquote><p dir="ltr" lang="en">'New York’s BitLicense framework, introduced in 2015, remains one of the strictest crypto regulatory regimes in the US (..) subject to capital requirements, compliance standards, cybersecurity reviews and ongoing regulatory oversight.' $GLXYhttps://t.co/5GvYUcslah</p>— Shrimp Among Whales (@Shrimp_a_Whales) May 19, 2026</blockquote></div></div><p>Applicants can spend years working through regulator reviews and multiple rounds of feedback before gaining approval.</p><p>Fintech lawyer Emily Goodman, who follows US crypto regulation closely, described the process as “one of the most rigorous and time-intensive licensing processes in financial services.”</p><p>She added: </p><blockquote>“The bar to secure a BitLicense approval is incredibly high but holding a BitLicense is a powerful commercial unlock.”</blockquote><p>Industry data suggests fewer than 40 firms currently hold an active BitLicense, making GalaxyOne Prime NY part of a very limited group serving the state’s crypto market.</p><h2>Galaxy Targets Wall Street Capital</h2><p>The approval gives Galaxy direct access to hedge funds, registered investment advisers, family offices, and institutions based in New York, which remains the largest concentration of institutional capital in the country.</p><p>Founder and chief executive Mike Novogratz said the market for digital assets has evolved beyond early speculative trading.</p><p>Novogratz said,</p><blockquote>“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. Galaxy was built to meet that demand, and now we can better serve New York’s institutions directly.”</blockquote><p>Galaxy said the new approval strengthens a regulatory footprint that already includes more than 50 licences worldwide. </p><p>The company currently oversees around $9 billion in client assets across its digital asset business.</p><div><div><blockquote><div dir="ltr" lang="en"><p>Galaxy Digital secures New York BitLicense &amp; Money Transmitter approval from NYDFS.</p><p>The move expands institutional crypto trading and custody services.  Galaxy now manages $9B client assets and holds 50+ licenses globally.#Bitcoin#Crypto#GalaxyDigital#NYDFS#Blockchain#ALPYpic.twitter.com/1SDS8jbfOE</p></div>— AllePay (ALPY) (@AllePayofficial) May 18, 2026</blockquote></div></div><p>Custody services are expected to play a major role in the company’s expansion plans, particularly as institutional investors continue looking for regulated and secure ways to store digital assets before deploying larger amounts of capital into the sector.</p><h2>Institutional Crypto Demand Keeps Rising</h2><p>Galaxy’s approval arrives as traditional financial firms continue increasing their exposure to digital assets, particularly following the approval of spot Bitcoin exchange-traded funds in the United States.</p><p>Large asset managers, hedge funds, and wealth firms have gradually expanded crypto allocations over the past year, while regulated market access has become increasingly important for institutional participants.</p><p>New York remains central to that shift because many of the country’s largest financial institutions and investment firms are headquartered there.</p><p>The state’s regulatory approval process has also become a credibility marker for crypto companies hoping to attract larger investors.</p><p>Only a handful of firms have secured BitLicenses in recent years. Bitcoin payments company Strike received approval in March, while MoonPay and Peter Thiel-backed Bullish were granted licences during 2025.</p><div><div><blockquote><div dir="ltr" lang="en"><p>🚨SCOOP: @moonpay has secured its New York BitLicense, clearing the way for the firm to serve customers in all 50 states.</p><p>MoonPay joins a short list of crypto-native firms including @coinbase, @Anchorage and @circle that have been approved to operate in the state by the @NYDFS.…</p></div>— Eleanor Terrett (@EleanorTerrett) June 4, 2025</blockquote></div></div><p>The limited number of approvals reflects how selective New York regulators remain when assessing crypto businesses.</p><h2>Smaller Crypto Firms Still Face Heavy Barriers</h2><p>While supporters argue the BitLicense creates safer conditions for institutional adoption, critics say the system favours large firms with deep resources.</p><p>Legal expenses, cybersecurity obligations, reserve requirements, and prolonged reviews can push compliance costs into the high six or seven figures before firms are even allowed to onboard customers.</p><p>Smaller startups often struggle to absorb those costs, leading some companies to avoid New York completely or operate through indirect channels instead.</p><p>For larger players such as Galaxy, however, securing regulatory approval could provide a competitive advantage as institutional investors increasingly favour firms operating under clear compliance frameworks.</p><p>The company is now positioned to expand its trading, custody, financing, asset management, and investment banking operations more aggressively inside the US institutional crypto market.</p></div></div></div>

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<p>Galaxy Digital has obtained a BitLicense and Money Transmission License from the New York State Department of Financial Services, allowing it to serve institutional clients in New York. This approval positions Galaxy among a select group of firms authorized to operate in a highly regulated market, enhancing its access to the largest concentration of institutional capital in the U.S. The company currently manages around $9 billion in client assets and holds over 50 licenses globally, aiming to expand its regulated digital asset trading and custody services.</p>

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Galaxy Digital Secures One of America’s Toughest Crypto Licences to Serve New York Institutions