Cryptocurrency firm Galaxy Digital has secured the widely coveted BitLicense, joining a relatively small number of cryptocurrency firms that have managed to achieve such a remarkable feat.
The licenses were granted to GalaxyOne Prime NY, which is the entity that is specifically meant to handle the firm's operations within the state.
The regulatory clearance makes it possible for the company to provide digital asset trading and custody services directly to New York-based institutional clients. This much-coveted demographic includes investment advisors, hedge funds, and family offices.
Accessing institutional capital
Galaxy, which was launched back in 2018 by hedge fund legend Mike Novogratz, currently manages approximately $9 billion in client assets.
Galaxy Founder and CEO Mike Novogratz has noted that New York, the biggest financial center, holds the "deepest pool of institutional capital in the country."
The Bitcoin bull has also added that digital assets are no longer considered fringe allocations for institutional players, which was not the case just a few years ago.
Galaxy's regulatory footprint now includes a whopping 50 licenses across the globe.
The significance of the BitLicense
Acquiring a BitLicense is widely viewed as one of the biggest hurdles for American companies. It is notoriously difficult to obtain, given that potential candidates are required to satisfy an extensive list of requirements related to capitalization, anti-money laundering rules, cybersecurity, and so on.
The license, which was introduced by the NYDFS in 2015, opens the doors to activities involving New York State or its residents.
Only 24 companies currently hold a BitLicense. These include Coinbase, Ripple, Bullish, and so on.
Dan Burgin
