Galaxy Digital has received a regulatory boost after the United Kingdom’s Financial Conduct Authority approved a license application for its subsidiary, Galaxy Digital UK Limited.
The FCA license will allow Galaxy Digital to expand its derivatives trading to customers in the U.K. via its London office. Galaxy Investment Banking will also utilize the license to offer its capital raising and investment banking solution to customers in the U.K., the company said in a press release.
The FCA nod also allows Galaxy Digital, founded by crypto entrepreneur and investor Mike Novogratz to expand its asset management business through the regulated subsidiary.
“Obtaining FCA authorisation is a pivotal achievement for the Galaxy group, as it allows us to deliver innovative trading solutions to institutional clients while maintaining the highest regulatory standards. London is a critical financial hub, and this authorisation allows us to deepen our presence in the UK, aligning with our mission to bridge traditional finance with the digital asset ecosystem,” Leon Marshall, chief executive officer of Galaxy Europe, said.
The license adds to the expanding regulatory footprint of New York-headquartered Galaxy Digital, which boasts more than 1,300 institutional trading counterparties. Its global presence includes offices in Chicago, Hong Kong, and Tokyo.
Crypto regulation is becoming increasingly clearer, including the U.K. and across Europe via the European Union’s Markets in Crypto Assets rules.
In this environment, Galaxy sees the FCA license as a major milestone that will enhance the company’s compliance efforts. It also positions the digital asset and blockchain firm to meet rising demand from the rapidly expanding institutional investor market.
“With a strong focus on attracting innovation capital, the UK government has fostered an environment conducive to the growth of transformative technologies like digital assets. This clarity is drawing top talent, investment, and innovation to the region, bolstered by the nation’s deep talent pool, world-class academic institutions, and entrepreneurial spirit,” Marshall added.
Galaxy Digital was recently in the news after the New York Attorney General announced a $200 million settlement over the firm’s involvement with LUNA.
The company also attracted a bullish outlook following its announcement of a 15-year artificial intelligence hosting deal with CoreWeave.
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