Galaxy Digital Wins Major Money Transmitter License in New York

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Galaxy Digital Wins Major Money Transmitter License in New York

On May 18th, Galaxy Digital, a company listed on the Nasdaq, received approval from New York’s financial regulator to operate as a licensed digital currency business and money transmitter. This allows them to directly serve institutional clients throughout New York State.

GalaxyOne Prime NY has received approval to offer services to investment advisors, hedge funds, and family offices. According to its founder, Mike Novogratz, this new entity will operate in the area with the highest concentration of institutional capital in the United States.

What the License Unlocks for Galaxy

GalaxyOne Prime NY is now approved to provide trading and safekeeping of assets using Galaxy’s complete platform.

In the past, many local funding sources used companies based in other countries or third parties to provide these services.

Galaxy currently operates under more than 50 licenses worldwide and manages approximately $9 billion in digital assets for its clients.

Approval in New York expands our reach to the largest group of professional investors in the country, following our recent changes to Nasdaq.

Galaxy has been approved by the New York Department of Financial Services (NYDFS) to operate as a licensed money transmitter and BitLicense holder, allowing us to offer our complete trading and custody services to institutional clients throughout New York State. This means the largest source of institutional capital in the U.S. now has direct access to our platform.

— Galaxy (@galaxyhq) May 18, 2026

Currently, fewer than 40 companies have an active BitLicense, meaning GalaxyOne is among a select group—including large cryptocurrency exchanges and stablecoin companies—authorized to operate in the state.

Galaxy was created to address this need, and now we’re able to work more directly with organizations in New York,” said Galaxy CEO Mike Novogratz.

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Why Critics Worry About Smaller Firms

New York’s BitLicense, first launched in 2015 by the Department of Financial Services (NYDFS), demands that companies applying for one create a comprehensive anti-money laundering (AML) program, follow strict cybersecurity rules approved by their board of directors, and maintain significant financial reserves – often exceeding a million dollars.

Each digital asset offered also needs a separate coin-by-coin approval before going live.

Emily Goodman, a lawyer specializing in financial technology and who follows cryptocurrency regulations at the state level, has observed that applying for these licenses usually takes between 18 and 24 months, and involves receiving feedback from regulators more than ten times.

Typically, the total expenses for launching a business reach hundreds of thousands or even millions of dollars *before* the first customer is acquired. This high cost could favor established companies like Galaxy, but makes it harder for new businesses to enter the market.

Getting a BitLicense is a very demanding and lengthy process, due to strict requirements from the New York Department of Financial Services and the complex rules themselves. While it’s extremely difficult to obtain, a BitLicense can significantly expand a company’s business opportunities, as Goodman pointed out.

Many new businesses find it hard to manage the costs of legal compliance, cybersecurity, and maintaining required funds. This can lead some companies to avoid operating directly in New York, or even leave the state altogether.

Proponents believe that clear rules and regulations could help more traditional institutions invest in cryptocurrency by providing a safe and legally sound way to do so.

Now that hedge funds and family offices can sign up directly, the key will be seeing how quickly Galaxy can turn that access into actual investments.

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2026-05-18 21:03