Galaxy Digital Secures UK License for Derivatives Trading

Galaxy Digital, a prominent crypto investment firm led by Michael Novogratz, has successfully secured a regulatory license for its UK subsidiary. This key license, granted by the UK’s Financial Conduct Authority (FCA), enables Galaxy to offer derivatives trading capabilities within the UK. The license also empowers Galaxy's investment banking unit to provide capital-raising and advisory services from its London office, further supporting its asset management business with activities such as fund distribution.

Leon Marshall, CEO of Galaxy Europe, highlighted the significance of this FCA authorization, stating that it allows Galaxy to expand its institutional trading reach while adhering to the highest regulatory standards. With this authorization, Galaxy Investment Banking will now offer capital-raising and investment banking services from its London office, and Galaxy Digital UK will support Galaxy Asset Management with fund distribution activities in the UK.

Galaxy Digital, headquartered in New York, already has a strong presence with over 1,300 institutional trading counterparties and offices in Chicago, Hong Kong, and Tokyo. The FCA license is expected to enhance Galaxy’s ability to meet the growing institutional demand for digital assets globally. However, the institutional adoption rate in the UK is lagging behind rapidly growing jurisdictions such as the US. Recent discussions at the Bitcoin for Institutions event in London emphasized the need for UK institutions to act swiftly to stay in line with the growing trend of digital asset adoption.

Industry leaders and policymakers at the event noted that while institutional awareness of the benefits of Bitcoin is more nascent in the UK, the topic is expected to gain more traction as corporate and sovereign game theories take hold. This FCA license is a significant step for Galaxy Digital in bridging traditional finance with the digital asset ecosystem, positioning the firm to offer innovative trading solutions to institutional clients in the UK.