Mike Novogratz’s Galaxy Lands Bitlicense to Serve New York Hedge Funds and RIAs

Galaxy Scores New York’s Bitlicense

Galaxyone Prime NY, the Galaxy entity designated to serve New York clients, received the approvals, giving the firm direct access to one of the most capital-dense markets in the United States. Registered investment advisors, hedge funds, and family offices in the state can now access Galaxy’s full suite of trading and custody services.

The licenses add New York to a regulatory footprint that spans more than 50 global approvals. Galaxy manages $9 billion in client assets across its digital asset business.

Founder and CEO Mike Novogratz said New York holds the deepest pool of institutional capital in the country. He further remarked that digital assets are no longer sitting at the edge of those allocations, and that Galaxy was built to meet that demand.

The Bitlicense is a specialized business license issued by the NYDFS for companies engaged in virtual currency business activity involving New York or New York residents. The framework has been active since August 2015, when then-Superintendent Benjamin Lawsky introduced it as one of the first comprehensive state-level regulatory structures for cryptocurrencies.

Companies holding a Bitlicense must meet strict requirements covering anti-money laundering programs, know-your-customer procedures, cybersecurity protocols, consumer protections, capital requirements, and regular NYDFS examinations. Compliance costs can run from hundreds of thousands to millions of dollars upfront, with ongoing obligations that follow.

The license covers a wide range of virtual currency activities, including transmission, custody, exchange services, and the issuance or administration of digital assets. Businesses operating with New York residents must hold one regardless of where they are physically based.

Merchants accepting crypto for goods or services, software developers, and non-custodial wallet providers where users control their own keys are generally exempt from the requirement.

Some companies, including Paxos and Gemini, have opted for a New York Banking Law charter rather than a standard Bitlicense. Both paths require NYDFS approval and carry similar compliance expectations.

Galaxy trades on Nasdaq under the ticker GLXY and is headquartered in New York City. The company also operates the 1.6 gigawatt Helios data center campus in Texas, positioning it among the larger data center developers in North America serving artificial intelligence and high-performance computing workloads.

New York regulators continue to treat the Bitlicense framework as the baseline standard for crypto businesses operating in the state. Enforcement activity has continued into 2026. Galaxy has offices across North America, Europe, the Middle East, and Asia.