Galaxy Digital Obtains FCA License, Paving Path for UK Derivatives Trading

Key Takeaways:

• Galaxy Digital has recently received another substantial license from the UK’s Financial Conduct Authority (FCA).
• The approval clears the path for wider derivatives trading and investment banking services in London.
• Galaxy Digital now holds an FCA license, marking another step in the growing UK institutional digital asset market.

Galaxy Digital, the leading digital asset and blockchain financial services firm founded by crypto billionaire Mike Novogratz, has reached an important milestone in its global growth strategy. Galaxy Digital UK Limited, Galaxy’s London-based subsidiary, was awarded a UK license from the UK’s Financial Conduct Authority (FCA), allowing the firm to significantly expand its operations across the United Kingdom. The FCA license reflects the company’s commitment to operating within stringent regulatory environments and expands its product offering in one of the most important financial marketplaces in the world.

FCA Approval Paves the Way for Enhanced UK Services

With new FCA regulations in place, Galaxy Digital now has vast opportunities in the UK market. More importantly, it allows the firm to expand its institutional derivatives business significantly. This expansion comes at a time when institutional investors are increasing in sophistication and appetite for digital asset derivatives as they seek to gain exposure while managing risk within the crypto market. This move will solidify Galaxy Digital’s position as a key derivatives provider within the digital assets ecosystem.

The FCA license not only gives Galaxy Investment Banking the ability to facilitate derivatives trading, but enables them to deliver capital raising and investment banking services directly to clients based in the UK. This includes supporting companies in the digital asset sector with fundraising efforts, strategic advisory, and M&A. In addition, Galaxy Digital UK will support Galaxy Asset Management’s business with respect to fund distribution activities. This multifaceted strategy will allow Galaxy Digital to serve a wide range of needs across the evolving UK digital asset ecosystem, providing clients with a comprehensive suite of offerings to help institutional clients participate in the burgeoning world of digital assets, in a compliant and regulatory framework.

UK Regulatory Clarity Attracts Investment and Innovation

Leon Marshall, CEO of Galaxy Europe and Global Head of Sales, stated that obtaining an FCA license was one of Galaxy’s most strategic decisions. He emphasized that their authorized solutions would offer institutional clients exceptional trading conditions while maintaining the highest level of regulatory compliance. Marshall emphasized London’s status as an essential global financial hub, adding that this authorization enables Galaxy Digital to further its UK presence — consistent with its mission to bridge traditional finance to the digital asset ecosystem.

Marshall also emphasized the UK’s progressive outlook toward digital asset regulation by advocating that the UK’s growing work on and commitment toward establishing a stable and forward-looking environment of regulations on crypto assets makes it one of the leaders in the worldwide digital asset ecosystem. According to him, as the UK government has focused on attracting innovation capital, they have cultivated fertile grounds for transformative technologies from emergent digital assets to thrive. He argues this regulatory clarity is attracting top talent, investment and innovation to the region, complemented by the nation’s deep talent pool, world-class academic institutions and entrepreneurial spirit. It is also a testament to the progress they have made towards creating a supportive and conducive environment for digital assets – attracting and securing major investment while at the same time reinforcing its status as a global leader in the sector.

Galaxy Digital Navigates Regulatory Landscape and Forges Ahead

Now with over 1,300 institutional trading counterparties, including growing footprints in North America, Europe and Asia, Galaxy Digital is poised to be a dominant player in the future of digital assets.

Although this FCA license is a big win, Galaxy Digital was previously denied a similar application. The firm previously settled a $200 million case with the New York Attorney General over its LUNA dealings. Yet, more recently, the firm secured a 15-year artificial intelligence hosting agreement with CoreWeave, which reflects its diversification into new technologies and its focus on continuing innovation.

With institutional adoption of digital assets accelerating steadily, Galaxy Digital is well-positioned to benefit from the increasing need for regulated and sophisticated digital asset financial services in the UK. This FCA license is in line with a wider trend of traditional finance institutions pursuing regulatory approval to operate in the UK crypto asset market, which is also being explored by the likes of BlackRock.

To meet demand for digital asset services, the company plans to hire more employees. With a team of around 40 people in London, these developments are in line with the UK’s comparatively progressive stance on crypto assets that has made the UK a destination for substantial investment and innovation.

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