Galaxy Digital wins NY BitLicense, money-transmitter license

The New York State Department of Financial Services approved a BitLicense and a money-transmitter license for GalaxyOne Prime NY on May 18, authorizing Galaxy Digital to offer regulated trading and custody services to registered investment advisors, hedge funds and family offices in New York.

The dual approvals allow GalaxyOne Prime NY to operate Galaxy’s full institutional platform within the state, removing the need for many local clients to route business through offshore entities or intermediaries.

Galaxy Digital is listed on Nasdaq. The company said the New York licenses expand its footprint after a recent corporate reorganization. Galaxy holds more than 50 global licenses and manages about $9 billion in client assets across its digital-asset business.

Industry figures show fewer than 40 entities hold an active BitLicense in New York, placing GalaxyOne among a limited group of firms authorized to provide regulated crypto services in the state.

The BitLicense framework, created by the NYDFS in 2015, requires applicants to build a full anti-money-laundering program, adopt board-approved cybersecurity standards and maintain capital reserves that can reach seven figures. New digital assets typically require separate approval before they may be offered.

Emily Goodman, a fintech attorney who follows state crypto policy, noted applicants usually face 18 to 24 months of review, more than 10 rounds of regulator feedback and upfront costs that commonly reach high six or seven figures. She added, ‘It is one of the most rigorous and time-intensive licensing processes in financial services.’

Galaxy CEO Mike Novogratz described the approval as a response to client demand, saying, ‘Galaxy was built to meet that demand, and now we can better serve New York’s institutions directly.’

Supporters of regulated access say the approvals could make it easier for fiduciaries to allocate to digital assets within a compliant framework. Galaxy will now need to translate the ability to onboard New York institutions into client inflows and assets under management.