According to reports from PRNewswire, Galaxy Digital announced Monday that the New York State Department of Financial Services granted the firm a BitLicense and Money Transmission License, allowing it to offer digital asset services across the Empire State. The approval specifically applies to GalaxyOne Prime NY, the Galaxy subsidiary that will provide trading and custody services to New York residents, institutions, and businesses. As reported by PRNewswire, institutions in the state — including registered investment advisors, hedge funds, and family offices — can now access Galaxy's full suite of trading and custody services, backed by a digital asset business managing $9 billion in client assets. The approval comes as Galaxy Digital continues to position itself across both digital assets and data center infrastructure, expanding its regulated crypto services while building out infrastructure tied to institutional compute demand.
Despite the regulatory win, Galaxy Digital shares declined about 7% on Monday afternoon, trading near $27.65 at press time. As reported by multiple sources, the market reaction occurred as the approval was announced, with investors showing mixed response to the regulatory milestone. The share decline reflects broader market dynamics affecting the crypto financial services sector, even as Galaxy achieves a significant regulatory achievement in one of the most stringent U.S. crypto markets.
As reported by PRNewswire, Galaxy founder and CEO Mike Novogratz emphasized the strategic importance of the approval, stating that "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." Novogratz noted that Galaxy was built to meet that demand and can now better serve New York's institutions directly, with the company positioned as a global leader in digital assets and data center infrastructure. The regulatory approval provides Galaxy Digital (NASDAQ: GLXY) with direct access to Wall Street's playground, giving the crypto financial services giant access to one of the world's largest pools of institutional capital. New York remains one of the strictest U.S. markets for crypto firms, with NYDFS requiring companies conducting virtual currency business activity to either hold a BitLicense or obtain a New York banking charter with crypto activity approval.
According to PRNewswire, the New York approval adds to Galaxy's regulatory footprint of more than 50 licenses globally. The firm currently manages roughly $9 billion in client assets across its digital asset business, demonstrating its significant market presence in the institutional digital asset space and providing comprehensive regulatory coverage across multiple jurisdictions. This regulatory footprint positions Galaxy as one of the most well-regulated digital asset service providers in the global market.
As reported by PRNewswire, the BitLicense was first introduced by NYDFS in 2015 and is considered one of the most rigorous state-level crypto frameworks in the U.S., requiring firms to meet strict standards in anti-money laundering, cybersecurity, and capital reserves. Galaxy is the second company this year to receive a BitLicense after Strike, the bitcoin payments firm founded by Jack Mallers, secured approval in March. In 2025, only two firms, MoonPay and the Peter Thiel-backed Bullish, were awarded a BitLicense, making Galaxy's approval particularly significant for institutional digital asset services in New York. Firms that transmit fiat currency may also need a money transmission license under New York banking law, adding to the regulatory complexity for crypto service providers.
