Mike Novogratz’s Galaxy receives New York BitLicense for institutional crypto push

Galaxy Digital said Monday that New York regulators granted the company a BitLicense and money transmitter license, allowing the crypto financial services firm to expand institutional digital asset operations in one of the industry’s most tightly regulated markets.

The approval from the New York State Department of Financial Services authorizes GalaxyOne Prime NY, the company’s New York entity, to offer regulated crypto trading and custody services across the state.

Galaxy said in a press release that the move gives New York-based institutions — including hedge funds, registered investment advisors and family offices — access to its digital asset platform, which the company said manages roughly $9 billion 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, Galaxy's founder and CEO, in a statement.

Galaxy becomes the second company to receive a BitLicense in 2026 after bitcoin payments firm Strike secured approval from NYDFS in March.

New York’s BitLicense framework, introduced in 2015, remains one of the strictest crypto regulatory regimes in the United States. Companies operating under the license are subject to capital requirements, compliance standards, cybersecurity reviews and ongoing regulatory oversight.

The approvals signal that New York regulators continue allowing selected crypto firms into the state market despite years of industry criticism that the licensing process is expensive and difficult to navigate.

Strike’s approval earlier this year allowed the Jack Mallers-led company to expand bitcoin financial services offerings in New York, including bitcoin purchases, salary conversion into bitcoin and payment services tied to bitcoin balances.

Strike also announced plans to expand into bitcoin-backed lending, a business line that collapsed across much of the crypto sector during the 2022 market downturn when lenders including Celsius, BlockFi and Genesis filed for bankruptcy.

Galaxy’s approval reflects a different part of the crypto market: institutional trading and custody infrastructure.

The company has increasingly focused on serving large investors and building infrastructure tied to both digital assets and artificial intelligence data centers. Galaxy now holds more than 50 licenses globally, according to the company.