Catenaa, Sunday, May 24, 2026- Crypto financial services firm Galaxy Digital secured a New York BitLicense and Money Transmission License on Monday, allowing the company to expand digital asset trading and custody services inside one of America’s strictest crypto regulatory markets.
The approval from the New York State Department of Financial Services covers GalaxyOne Prime NY, the company’s subsidiary focused on institutional crypto trading and custody operations.
Galaxy founder Mike Novogratz said the approval strengthens the company’s access to institutional investors based in New York, which remains one of the world’s largest financial centers.
The company currently manages nearly $9 billion in client assets across its digital asset operations.
Strict Crypto Oversight
New York introduced the BitLicense framework in 2015 as one of the first state-level crypto regulatory systems in the United States.
The license requires firms to meet strict standards involving anti-money laundering controls, cybersecurity systems, financial reporting and capital reserve requirements.
Many crypto firms avoided operating in New York after regulators introduced the framework because of the high compliance costs and extensive supervision involved.
Industry executives have often described the BitLicense process as one of the toughest regulatory hurdles in the American crypto sector.
Galaxy becomes one of only a handful of firms to secure the approval during the past two years.
Growing Institutional Demand
The approval arrives as institutional interest in digital assets continues expanding across traditional financial markets.
Large investment firms, hedge funds and banks have increasingly entered crypto markets following the launch of spot Bitcoin exchange-traded funds and broader regulatory progress in Washington.
Galaxy said New York institutions are allocating larger portions of capital toward digital assets, increasing demand for regulated trading and custody infrastructure.
The company has spent years building services aimed at hedge funds, family offices, asset managers and corporate investors seeking regulated crypto exposure.
Global Expansion Continues
Galaxy said the New York approval expands its worldwide regulatory footprint to more than 50 licenses and registrations.
The company operates across trading, asset management, tokenization, staking and blockchain infrastructure businesses.
The license also strengthens Galaxy’s standing as competition intensifies among regulated crypto service providers targeting institutional clients.
Strike, the Bitcoin payments company founded by Jack Mallers, also secured a New York BitLicense earlier this year.
Only two companies received BitLicenses during 2025, including crypto payments firm MoonPay and Bullish, a digital asset exchange backed by investor Peter Thiel.
Market Competition Rising
The race for regulated crypto licenses has accelerated as governments tighten oversight while institutional investors demand stronger compliance standards.
Firms holding New York licenses are increasingly viewed as having passed one of the industry’s most difficult regulatory reviews.
The approval may also help Galaxy expand custody and prime brokerage services as tokenized assets, stablecoins and institutional crypto trading volumes continue growing.
Regulatory approval remains one of the largest barriers to entry in the US digital asset industry, especially in New York, where state officials continue enforcing strict supervision over crypto firms.
