Crypto financial services firm Galaxy Digital announced on 18 May that it received a BitLicense and Money Transmission License from the New York State Department of Financial Services, allowing the company to offer regulated digital asset services to institutional clients across New York state.
Galaxy Gains Coveted BitLicense to Serve Institutional Clients in New York
18 May 2026 - 19:05 CEST
By Jona Jaupi
The approval allows Galaxy's New York entity, GalaxyOne Prime NY, to provide crypto trading and custody services to institutions such as registered investment advisors, hedge funds and family offices. Galaxy said it now holds more than 50 licences globally and manages about $9bn in client assets.
"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," said Mike Novogratz, founder and CEO of Galaxy. "Now we can better serve New York's institutions directly."
An elite licence
The BitLicense, introduced by NYDFS in 2015, is a key regulatory licence required for crypto companies operating in New York state.
Firms seeking the approval must meet requirements around anti-money laundering (AML) controls, cybersecurity, compliance, capital reserves and consumer protection.
Galaxy’s approval now places it among a small group of crypto and fintech firms that have received permission to operate regulated digital asset businesses in New York. Other popular names include PayPal, Robinhood, Circle Internet Group and MoonPay.
The approval also comes as more digital asset firms continue expanding crypto services for traditional finance (TradFi) institutions, as demand for crypto exposure continues to grow in the US.
JPMorgan analysts recently projected crypto inflows would continue rising in 2026 after reaching a record $130bn in 2025 – driven mainly by institutional investors. The demand could increase further if the CLARITY Act – proposed US crypto market structure legislation – advances through Congress.
Stock price and earnings
Despite the news, shares of Galaxy Digital (GLXY) fell nearly 7% on Nasdaq to trade at $27.71 as of 16:27UTC. The stock briefly climbed towards $29 earlier in the day before turning lower after the market opened, tracking broader weakness across equities. The Nasdaq Composite Index was down 1.1% on the day, weighing on risk assets.
Galaxy reported a net loss of $216mn on 28 Apr for the first quarter of 2026, compared with a $482mn loss in the previous quarter. The report noted that weaker crypto prices weighed on results. The company ended the quarter with about $2.6bn in cash and stablecoins.
Galaxy’s Q1 results came in ahead of analyst expectations, with the company reporting a diluted loss of $0.49 per share, compared with analyst estimates of a roughly $0.94 loss per share, according to Yahoo Finance data.
The company expects revenue from its Helios AI and data centre business to increase in Q2 following the start of operations under its CoreWeave lease agreement.
