Galaxy Digital UK Arm Secures FCA License, Plans to Expand Derivatives Trading

Michael Novogratz’s crypto investment firm Galaxy Digital has secured a regulatory license for its UK subsidiary on Wednesday.

The key license from the UK’s Financial Conduct Authority (FCA) will allow Galaxy to offer derivatives trading capabilities in the UK.

Further, the license will help the firm’s investment banking unit to offer capital-raising and advisory services from its London office. Galaxy Digital UK would also support its asset management business with activities like fund distribution, the official release noted.

With this FCA registration:

➡️ Galaxy Investment Banking will now offer capital raising and investment banking services out of our London office.

➡️ Galaxy Digital UK will also support Galaxy Asset Management with fund distribution activity in the UK.

➡️ The FCA license allows…

— Galaxy (@galaxyhq) April 2, 2025

Galaxy Digital Eyes Institutional Trading Expansion in the UK

Leon Marshall, CEO of Galaxy Europe, noted that the FCA authorisation would allow Galaxy to expand its institutional trading reach.

“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,” Marshall said.

The New York-headquartered Galaxy Digital already has over 1,300 institutional trading counterparties with offices in Chicago, Hong Kong, and Tokyo.

“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.”

Growing Institutional Demand for Digital Assets

As of Jan 2025, 86% of surveyed institutional investors have exposure to digital assets, or plan to make crypto allocations in 2025, a new EY report read.

“This FCA license enhances Galaxy’s ability to meet the growing institutional demand for digital assets globally,” Galaxy Digital said in the release.

However, in the UK, institutional adoption rate is falling behind, when compared to rapidly growing jurisdictions such as the US.

During the Bitcoin for Institutions event, held recently in London at The Law Society, investors, policymakers, and industry leaders discussed how UK institutions must act to stay in line with the growing trend.

Allen Farrington, co-founder of Axiom, a Bitcoin-native investment firm, described Bitcoin as “forming the basis of a viable institutional asset class.” However, he also emphasized that UK institutions remain hesitant in crypto adoption.

“In the UK, institutional awareness of the benefits of Bitcoin is more nascent, but the topic will move closer to center stage as corporate and sovereign game theory quickly take hold,” Andrew Hohns, founder and CEO of Newmarket Investment Management, noted.