Galaxy Digital said Monday that the New York State Department of Financial Services granted GalaxyOne Prime NY a BitLicense and Money Transmission License, authorizing the company to offer regulated digital asset services to institutions across New York.

The approval gives registered investment advisors, hedge funds, and family offices in the state access to Galaxy’s trading and custody services. Galaxy said the business is backed by a digital asset platform managing $9 billion in client assets and a regulatory footprint of more than 50 global licenses.

New York remains one of the strictest US markets for crypto firms. NYDFS says companies conducting virtual currency business activity in the state generally need either a BitLicense or a New York banking charter with approval to conduct crypto activity. Firms that transmit fiat currency may also need a money transmission license under New York banking law.

“New York is home to the deepest pool of institutional capital in the country, and digital assets are no longer sitting at the edge of those allocations,” said Mike Novogratz, founder and CEO of Galaxy. “Galaxy was built to meet that demand, and now we can better serve New York’s institutions directly.”

The approval comes as Galaxy continues to position itself across both digital assets and data center infrastructure. The company has expanded its regulated crypto services while also building out infrastructure tied to institutional compute demand.

Despite the regulatory win, Galaxy shares declined about 7% on Monday afternoon, trading near $27.65 at press time.