The crypto-focused financial services firm Galaxy Digital, led by Mike Novogratz, has secured both a BitLicense and a Money Transmitter License from the New York State Department of Financial Services (NYDFS) through its subsidiary GalaxyOne Prime NY. The licenses authorize Galaxy to expand regulated digital asset services for institutional clients within New York, marking a meaningful step in the company’s regulatory footprint in one of the most scrutinized crypto markets in the United States.

Galaxy said in a Monday release that approvals were granted to GalaxyOne Prime NY, which provides trading and financing services to institutional investors. Novogratz characterized New York as “the deepest pool of institutional capital in the country,” and said the approvals would broaden institutional access to digital assets. The BitLicense framework, introduced in 2015, is widely regarded as one of the most demanding regulatory regimes for crypto firms, requiring comprehensive controls across anti-money laundering, cybersecurity, capital reserves, and consumer protection.

As Cointelegraph recently reported, Strike’s NYDFS approval placed another high-profile crypto business within the state’s regulated framework, underscoring a growing emphasis on compliance and supervision in New York’s crypto ecosystem.

Key takeaways

• Galaxy Digital secures BitLicense and Money Transmitter License for GalaxyOne Prime NY, enabling regulated digital asset trading and financing services to institutional clients in New York.
• The licenses extend Galaxy’s regulatory footprint in a jurisdiction known for rigorous compliance standards, including AML/KYC, cybersecurity, capital reserves, and consumer protections.
• The development aligns with Galaxy’s broader diversification into data-center infrastructure, beyond traditional trading and investing activities.
• Galaxy reported a first-quarter net loss of $216 million with gross revenue of $10.2 billion, reflecting industry volatility, while signaling expected growth from its data-center business in the coming quarters.
• The NYDFS licensing pathway remains a critical gatekeeper for institutional participants and may influence how other crypto firms approach US market access and cross-border operations.

Regulatory milestone in a tightly regulated market

New York’s BitLicense is widely recognized as a stringent gateway to offering virtual currency services within the state. Beyond mere registration, firms must demonstrate robust compliance programs spanning anti-money laundering and cybersecurity, maintain appropriate capital reserves, and implement consumer-protection measures. The approval of GalaxyOne Prime NY signals not only a green light for Galaxy’s institutional clientele but also a benchmark for the level of oversight the firm will operate under in one of the most demanding regulatory environments in the United States.

The licensing decision reflects a broader pattern in which crypto firms seek to anchor operations in jurisdictions with clear, enforceable standards that can reassure institutions and counterparties. In New York, where financial services regulation is among the most developed in the crypto space, obtaining a BitLicense and related licenses is interpreted as a signal of legitimacy and operational readiness for high-volume, institution-grade activity.

Strategic expansion beyond trading and investing

Galaxy’s regulatory clearance comes amid a deliberate corporate strategy to broaden its asset and infrastructure footprint. In its Q1 earnings materials, Galaxy noted progress in expanding data-center capabilities as part of a planned growth axis alongside digital-asset trading and financing. The company points to its Helios Data Center campus in Texas as a key driver of future revenue, with revenue streams anticipated to be connected to artificial intelligence and high-performance computing workloads.

This shift mirrors a broader industry move where crypto firms are leveraging modern data-center capabilities to monetize energy- and compute-intensive workloads, including AI and HPC tasks, alongside traditional digital-asset activities. Galaxy has framed the data-center expansion as a means to sustain longer-term growth in a market characterized by cyclicality in asset prices and trading volumes. The company’s strategy aligns with expanding demand for regulated, institution-ready operational capabilities that can support both digital-asset markets and enterprise-grade compute workloads.

In a separate context, Galaxy has been involved in collaboration and product development that signals continued diversification beyond trading and custody. The company’s broader ecosystem includes institutional yield initiatives and DeFi-related offerings backed by crypto assets, demonstrating a deliberate attempt to diversify revenue streams and reduce reliance on price-driven trading performance.

Financial performance and forward-looking outlook

Galaxy’s first-quarter results highlighted the ongoing volatility in the digital-asset sector. The firm reported a net loss of $216 million for the quarter ended March 31, with gross revenue totaling $10.2 billion, down from $12.9 billion in the prior-year period. The quarterly results underscored the sensitivity of the business to crypto price cycles and market conditions, even as the firm pursued diversification into data-center infrastructure and related compute workloads.

Management indicated that growth momentum is expected to materialize as the data-center segment scales, with the Helios campus in Texas positioned to contribute meaningfully to revenue in the current and upcoming quarters. The company’s outlook suggests a bifurcated path: continued volatility in core crypto markets paired with the potential uplift from infrastructure-driven revenue streams, including AI- and HPC-related workloads. Investors and analysts will be watching how regulatory clarity and the broader policy environment influence Galaxy’s ability to monetize its data-center assets and any associated institutional offerings.

Notably, the regulatory environment in the United States remains a central factor for institutional players seeking to engage in regulated digital-asset activity. The NYDFS licensing pathway is often cited as a practical barrier to entry—one that can deter less prepared operators while signaling to counterparties that a firm has instituted robust compliance and governance frameworks. In this context, Galaxy’s approvals may facilitate more structured, compliant access for NY-based institutions seeking exposure to regulated digital-asset services, while potentially shaping competitive dynamics among large-cap players pursuing U.S. market access.

Beyond domestic licensing, observers note the broader regulatory discourse surrounding crypto assets in North America and Europe. While MiCA and other EU frameworks aim to standardize operations across member states, U.S. policy remains fragmented across federal and state levels. The industry’s emphasis on licensing, supervision, and consumer protections persists, with NYDFS serving as a prominent reference point for what constitutes enterprise-grade compliance in a regulated market environment.

According to Galaxy, the licensing milestone is a step toward deeper institutional participation in regulated digital assets, aligning with a broader industry push to ensure that market infrastructure keeps pace with demand from banks, asset managers, and other regulated entities seeking compliant exposure to crypto assets.

Closing perspective: the path ahead for Galaxy and its peers will hinge on the evolution of the regulatory regime, the pace of data-center-driven revenue growth, and the ability to maintain robust risk controls across trading, financing, and compute-intensive operations. As the market navigates ongoing cycles of volatility and policy developments, institutional-grade readiness and disciplined execution in both digital-asset and infrastructure lines will be decisive in determining long-term resilience and growth.

Shiba Inu saw billions of SHIB hit exchanges on May 18 as crypto market liquidations accelerated.

On-chain exchange flow data tracked by CoinGlass shows SHIB open interest at $61.2 million on May 18, with $42,485 in futures positions liquidated in the 24-hour session. The inflow spike coincided with wider crypto market liquidations as leveraged long positions were unwound across multiple assets.

SHIB was trading at $0.00000567 at time of writing, down roughly 10% on the week. The token is 54% lower over the past 12 months and well below its all-time high of $0.00008616.

Exchange reserve data showed assets on Binance alone reaching 61.8 trillion tokens, a marked rise since March as profit-takers moved holdings onto platforms ahead of potential distribution.

Shiba Inu inflows signal rising sell pressure

Tokens moved onto exchanges are one step from the open market and available for immediate liquidation. The spike in SHIB inflows creates a mechanical increase in available sell-side supply, which typically suppresses price during periods of weak demand.

As crypto.news reported, institutional and whale-level SHIB transactions surged 111% earlier in 2026, indicating large holders are actively repositioning rather than holding passively.

Meme coins have faced persistent pressure throughout 2026. Bitcoin’s 22% decline in Q1 tightened conditions across speculative assets, with SHIB bearing the brunt alongside other high-beta tokens. The token’s 589 trillion circulating supply gives it limited leverage from burn activity, as individual whale distribution events can rapidly absorb months of supply reduction.

What SHIB needs to stabilise

Stabilisation requires demand to absorb incoming supply rather than sellers finding a thin order book. As crypto.news noted in its Shibarium upgrade analysis, on-chain adoption remains uneven and without acceleration in utility metrics, upside moves in SHIB continue to struggle.

A Fully Homomorphic Encryption upgrade planned for Q2 2026 through cryptography firm Zama could add a privacy dimension, but near-term price action depends on whether these exchange inflows reverse.

The broader context for meme coin behaviour in 2026 was covered by crypto.news in its analysis of how on-chain activity spikes often precede continued downside rather than reversals.

TLDR:

• BitGo’s Deputy CISO says businesses must prioritize custody decisions before selecting any digital asset tools or wallets.
• Hot and cold wallet choices should align with a company’s liquidity needs and intended digital asset usage profiles.
• Governance frameworks covering people, process, and technology must be in place before any transactions begin.
• Business model alignment, not trend-chasing, should drive every company’s digital asset architecture and strategy decisions.

Digital assets security remains a top priority as businesses accelerate their move into the digital asset economy. BitGo Deputy CISO Manny Khan has outlined a structured approach for companies entering this space.

Writing in Forbes, Khan argues that businesses often get the process backwards. Most organizations start with tools rather than building the right foundation.

His framework centers on custody, governance, and architecture decisions tailored to each business model.

Custody and Wallet Architecture Must Come Before Anything Else

Custody is the first decision any business should make before entering the digital asset space. Khan stresses that organizations must honestly assess whether they are ready to hold digital assets internally.

Handing this responsibility to an IT team without proper preparation can lead to irreversible losses. History has shown that preventable mistakes in this area carry serious consequences.

For businesses handling meaningful value, partnering with a regulated, institutional-grade provider may be more appropriate. This does not mean all companies should follow the same path.

Each organization must weigh its internal maturity against external options realistically. Security and control are not mutually exclusive, but achieving both requires the right fiduciary relationships.

Wallet architecture decisions should also be driven by purpose, not convention. Hot wallets suit speed and operational availability, while cold wallets prioritize long-term asset protection.

Neither option is universally superior to the other. The right choice depends entirely on liquidity needs and intended usage.

Multi-sig and MPC technologies also carry real operational consequences. They affect accountability, transparency, and resilience across the organization.

Companies should categorize digital assets by usage and liquidity profiles. Forcing all use cases into one mold typically increases risk rather than reducing it.

Governance Frameworks and Business Model Alignment Drive Long-Term Success

Governance must be established before a company begins transacting in digital assets. Khan’s framework covers people, process, and technology, with disciplined vigilance at the center.

Teams need a clear understanding of the stakes involved at every level. Processes must define approvals, controls, and accountability from the start.

As Khan noted via BitGo’s official post: “Most businesses are approaching it backwards, starting with tools instead of building the right foundation first.” Digital asset readiness requires compliance, security, finance, and operational controls working together.

Treating it as a simple infrastructure project misses the real challenge entirely. Silos between departments create misalignment and increase exposure.

Business model alignment is equally critical when developing a digital asset strategy. A trading firm has different liquidity needs than a corporate treasury function.

A fintech business requires secure API integration, while a B2B2B provider may need shared-control models. Architecture decisions should always work backward from the customer profile and operating model.

Not every company requires the same level of urgency in adopting digital assets. Businesses operating locally or within narrow geographic footprints may not need immediate action.

However, cross-border activity and settlement friction are pushing global companies in this direction. Leaders must approach this space with clear eyes, sound controls, and architectures that fit their specific business.

Key takeaways:

• Aggressive Bitcoin buying by Strategy helped to offset the recent leveraged long liquidations.
• Rising bond yields and a heavy US government debt burden are driving investors toward scarce assets.
• A potential deal between the US and Iran could quickly restore traders’ risk appetite.

Bitcoin (BTC) faced a rejection following a failed attempt to break above $82,000 on Thursday. A subsequent retest of the $76,000 level on Monday triggered $400 million in liquidations for bullish Bitcoin positions over a four-day period. While traders’ confidence took a hit from the 7% price decline, the prospects for recovering the $80,000 mark remain valid.

Bitcoin reserve accumulation by Strategy (MSTR US). Source: Strategy

US-listed Strategy (MSTR US) completed the acquisition of $2 billion in BTC over the past week alone. Spearheaded by Michael Saylor, the company continues to surprise investors by finding innovative ways to reduce the cost of capital and raise cash through equity issuance, whether via MSTR common stock or STRC preferred equity.

More importantly, Strategy proved the company can also capitalize on a weaker market by repurchasing $1.5 billion of its debt due in 2029. Retiring some of its senior convertible notes reduces potential future dilution for current MSTR holders. This move clears the runway for new share issuance and additional Bitcoin purchases.

S&P 500 index (left) vs. US 10-year Treasury yield (right). Source: TradingView

From a macroeconomic perspective, the odds of a sustainable bullish momentum for Bitcoin improved as traders demanded higher returns to hold government bonds. Yields on the 10-year Treasury jumped to 4.60%, hitting their highest level in 16 months. Investors are gradually realizing the heavy burden on the US Treasury, especially with $2 trillion in long-term debt maturing in 2026.

US dollar weakness and a potential deal with Iran

The US Federal Reserve will likely need to continue accumulating bonds and Treasurys, a move that potentially weakens the US dollar. Typically, investors seek shelter in scarce assets when they lose confidence in the central bank’s ability to navigate a crisis without devaluing the currency. Even if gold acts as the primary beneficiary, the incentive to hold fixed-income assets drops significantly.

Gold/USD (left) vs. Bitcoin/USD (right). Source: TradingView

Gold prices surged in January after the US captured Venezuelan President Nicolas Maduro and President Trump’s global trade war escalated. However, gold retraced most of those gains over the next four months, while Bitcoin built strong bullish momentum, jumping to $76,500 from $65,000 in late February. These recent price moves hint at growing confidence in Bitcoin as a reliable hedge instrument.

Related: Analysts debate whether Bitcoin is in ‘sell in May’ bear market setup

Crude Brent oil prices jumped to $113 on Monday as negotiations to fully reopen the Strait of Hormuz backpedaled. Oil prices have surged more than 50% since the US and Israel attacked Iran in late February. President Trump’s administration also decided not to renew a waiver for Russian crude oil, further squeezing supply, according to Yahoo Finance.

A deal between the US and Iran, while not the baseline scenario, could trigger renewed risk appetite and catapult the Bitcoin price back above $80,000. Inflation has been pinned down by high energy prices, limiting the odds of expansionary monetary policies. Even so, the odds favor Bitcoin, as the US stock market is hovering near its all-time high while the cryptocurrency still sits 39% below its peak.

TLDR:

• Citi warns quantum computing could break Bitcoin encryption, with Q-Day set between 2030 and 2032.
• An estimated 6.7 to 7 million BTC in exposed wallets make Bitcoin a prime quantum attack target.
• Ethereum’s flexible governance positions it to adapt more readily against the quantum computing threat.
• Fireblocks CEO calls Bitcoin’s quantum risk a coordination issue and notes post-quantum tools exist.

Quantum computing poses a growing threat to the crypto sector, according to a new Citi research note. The report warns that Bitcoin faces far greater exposure than Ethereum.

That divide, analysts argue, comes down to governance rather than technology alone. Recent breakthroughs have pushed the estimated timeline for practical quantum attacks to as early as 2030.

With millions of Bitcoin already at risk, the industry is watching this closely. Analysts say the window for preparation is narrowing fast.

Bitcoin’s Structural Vulnerability to Quantum Attacks

Bitcoin transactions expose the sender’s public key to the network until they are confirmed. This creates a window where a quantum attacker could theoretically derive a private key.

From there, the attacker could redirect funds before the transaction is finalized. The exposure is brief but real, and it grows more dangerous as quantum computing hardware improves.

Google’s research suggests a 500,000-qubit machine could break Bitcoin’s encryption in minutes. No such machine currently exists, but the pace of progress is accelerating.

Google places its Q-Day estimate at 2032, while some researchers suggest 2030. Either way, the crypto industry has limited time to act.

The dormant wallet problem makes Bitcoin’s exposure more pressing. An estimated 6.7 to 7 million BTC sit in wallets with public keys already exposed. These wallets represent a concentrated and attractive target for any future quantum-capable actor.

Among those wallets, roughly 1 million Bitcoin believed to be mined by Satoshi Nakamoto remain untouched. These coins use early address formats that are particularly vulnerable to quantum attacks. At current prices, they carry an estimated value of around $82 billion.

Governance Gap Separates Bitcoin and Ethereum

Ethereum and other proof-of-stake networks are better positioned to adapt, Citi analysts said. Their more flexible governance allows for faster protocol changes when needed.

Ethereum also has a demonstrated history of regular protocol upgrades. That agility gives it a structural advantage against the quantum computing threat.

Bitcoin’s conservative, consensus-driven model is widely seen as central to its credibility. That same model, however, makes rapid protocol changes slow and contested.

Moving to quantum-resistant cryptography would likely require a hard fork, a notoriously difficult process. Broad network consensus would need to be achieved before any changes take effect.

Fireblocks CEO Michael Shaulov addressed this at the Financial Times Digital Asset Summit, arguing that the threat “is not actually a threat as people make it out to be.”

He described Bitcoin’s quantum challenge as “mostly a coordination issue” for the community rather than a technical one.

Shaulov further noted that “the entire internet industry needs to basically leapfrog and start using post-quantum encryption,” adding that “generally speaking, we have the available algorithm.” His remarks suggest that preparation, not the threat itself, remains the real challenge.

Citi’s analysts pointed to BIP-360 and BIP-361 as proposed Bitcoin upgrades worth monitoring. Ethereum, meanwhile, is not entirely immune to quantum threats either.

A quantum-enabled attacker could theoretically acquire enough private keys to control 33% of staked assets. This could allow disruption of block finality or broader network operations.

Bitwise will devote 10% of its HYPE ETF management fee to buying HYPE on its balance sheet.

Bitwise Asset Management announced that it will devote 10% of the management fee from its Bitwise Hyperliquid ETF (NYSE: BHYP) to holding HYPE on its balance sheet. The firm said the move mirrors Hyperliquid’s own tokenomics, which routes roughly 99% of protocol revenue through its Assistance Fund to repurchase HYPE.

“Hyperliquid’s token is explicitly designed so that rising trading activity on the Hyperliquid platform directly benefits token holders,” said Matt Hougan, Chief Investment Officer of Bitwise. “This has translated into historically strong returns. We think it’s one of the most exciting assets in crypto.”

HYPE ETF structure and the buyback signal

BHYP launched on NYSE on May 15 with a 0.34% sponsor fee, waived for the first month on the fund’s first $500 million in assets. It is the only US-listed Hyperliquid product to stake HYPE through the issuer’s own infrastructure rather than a third party. As crypto.news reported, HYPE rebounded toward $46 following the launch and has recovered roughly 65% since the start of 2026.

The 10% fee commitment adds a second capital channel into HYPE beyond staking. Bitwise stakes the fund’s holdings through Bitwise Onchain Solutions, with rewards flowing back into the fund after a 15% fee. Adding balance sheet purchases from management fees means institutional capital flows into HYPE through two parallel mechanisms.

Competing with BHYP is 21Shares’ THYP product, which launched on Nasdaq earlier in the week and drew approximately $1.2 million in inflows on its first day. Together, the two HYPE ETFs have accumulated more than $5.6 million in total net inflows.

Why the fee model matters for HYPE

Hyperliquid saw $2.9 trillion in trading volume in 2025, up more than 400% year on year, and currently commands roughly 60% of all on-chain derivatives open interest globally. HYPE’s market cap stands above $11 billion, making it the tenth-largest crypto asset by market capitalisation.

As crypto.news documented in its April filing update, Bloomberg ETF analyst Eric Balchunas flagged the addition of the BHYP ticker and fee details as signs the fund was approaching launch.

The fee-to-buyback pledge aligns Bitwise’s incentives directly with Hyperliquid’s community-first model. Every dollar of management fee generates a fraction of HYPE that sits permanently on Bitwise’s balance sheet, creating a demand mechanism that scales with fund AUM alongside ETF inflow growth.