Galaxy Digital UK obtains FCA license for derivatives trading expansion

Galaxy Digital, the cryptocurrency firm founded by billionaire Mike Novogratz, has received approval from the UK’s Financial Conduct Authority (FCA) to execute derivatives trading through its London-based subsidiary, Galaxy Digital UK Ltd. ​

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.

Galaxy Digital secures FCA approval, expands institutional trading reach in the UK

Leon Marshall, chief executive officer of Galaxy Europe, said that the approval is a pivotal achievement for the Galaxy group, as it allows them to deliver innovative trading solutions to institutional clients while maintaining the highest regulatory standards. 

He noted: 

“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.”

This FCA authorization represents a significant trading milestone for Galaxy Digital. It contributes to the firm’s established reputation for pioneering trading solutions for an institutional client base while satisfying stringent regulatory requirements. 

The approval contributes to Galaxy Digital’s growing regulatory footprint. The Company, which is headquartered in New York and has offices in Chicago, Hong Kong, and Tokyo, has a client base that includes over 1,300 institutional trading counterparties.

Galaxy Digital expands as the UK strengthens its crypto-friendly stance

Galaxy Digital is also planning to expand its workforce to meet the demand for digital asset services. With its roughly 40-employee team based in London, these developments align with the UK’s relatively forward-looking approach to the regulation of crypto assets, making the UK a destination for high investment and innovation. ​ 

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.

Marshall says the UK government has created a thriving environment for transformative technologies like digital assets. He believes the country is on the right track, with a strong push to attract innovation capital.

He added that 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.

Galaxy Digital recently made headlines after the New York Attorney General revealed a $200 million settlement over its involvement with LUNA. The firm also attracted bullish sentiment with its announcement of a 15-year artificial intelligence hosting deal with CoreWeave.

Meanwhile, Galaxy Digital’s derivatives trading license approval by the FCA comes amid a growing wave of institutional interest in digital assets. Traditional finance companies have also sought the FCA’s approval as crypto asset firms in the UK. One of the notable companies on this list is asset management giants like BlackRock.

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