Galaxy Digital Secures NY BitLicense for Institutional Crypto

Galaxy Digital’s subsidiary GalaxyOne Prime NY received a BitLicense and a Money Transmission License from the New York State Department of Financial Services, the company announced Monday. The approvals allow the firm to offer regulated digital-asset trading, custody and financing services to institutional clients in New York.

The licenses cover services for hedge funds, asset managers and other institutional investors that require state-licensed operations. The authorizations permit GalaxyOne Prime NY to operate under New York’s regulatory framework for virtual currency businesses.

Mike Novogratz described New York as the “deepest pool of institutional capital in the country” and linked the approvals to plans to broaden institutional access to digital assets.

The BitLicense, introduced in 2015, requires firms to meet standards on anti-money-laundering controls, cybersecurity, capital reserves and consumer protection. A Money Transmission License adds obligations related to the movement and custody of customer funds.

Galaxy reported a net loss of $216 million for the quarter ended March 31, which it attributed primarily to lower digital-asset prices. Gross revenue for the quarter was $10.2 billion, down from $12.9 billion in the same period a year earlier, and the company said the loss was smaller than analyst expectations.

Galaxy is expanding into data center infrastructure and expects growth to accelerate in the current quarter as revenue from its Helios Data Center campus in Texas increases. The company has identified potential revenue from artificial intelligence and high-performance computing workloads as part of its diversification efforts.

Galaxy noted the licenses extend its regulatory reach and aim to support broader institutional participation in New York’s digital-asset markets by allowing GalaxyOne Prime NY to offer regulated trading, custody and financing products to institutional clients.