- Galaxy Digital has obtained a New York BitLicense and Money Transmitter License, allowing it to offer regulated crypto services to institutional clients in the state.
- CEO Mike Novogratz called New York “the deepest pool of capital in the country” and noted digital assets are moving into mainstream institutional allocations.
- The firm’s share price fell over 5% amid broader market weakness, with retail sentiment remaining bearish despite the regulatory milestone.
- The difficult-to-obtain BitLicense places Galaxy among an elite group of about 40 approved firms, including Coinbase, Robinhood, and Paypal.
- The license supports Galaxy‘s strategy to serve U.S. institutions, and it currently provides staking infrastructure for BlackRock‘s iShares Ethereum ETF.
Galaxy Digital secured a pivotal New York BitLicense on Monday, marking a major expansion into the state’s lucrative institutional crypto market. The license allows its subsidiary, GalaxyOne Prime NY, to offer compliant trading and custody services to local investment advisors and funds.
Consequently, the firm now joins a small cohort of about 40 companies, including Coinbase and PayPal, that hold the stringent state license. However, the regulatory win failed to boost its stock, which fell over 5% to its lowest level this month amid broad market declines.
Retail sentiment on platforms like Stocktwits stayed bearish, with one trader saying they could no longer recommend GLXY until the company “takes better care of shareholders.” Meanwhile, CEO Mike Novogratz emphasized the strategic importance of the approval in a post on X, calling New York the deepest capital pool where digital assets are now part of core allocations.
The license qualifies Galaxy to operate a full institutional digital asset business for clients with $9 billion in assets. This move deepens its Wall Street integrations, such as providing staking infrastructure for BlackRock‘s iShares Staked Ethereum Trust ETF.
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