Bullish Wins New York BitLicense to Expand Crypto Trading and Custody

The NYDFS BitLicense, introduced in 2015, is widely regarded as one of the toughest state-level digital asset regimes in the U.S. Currently, fewer than 35 firms hold the authorization, among them Coinbase, PayPal, and Circle. For Bullish, the approval is a significant step in positioning itself as a trusted, institutional-grade platform capable of operating in one of the world’s most demanding regulatory environments.

“New York is widely recognized as being at the forefront of virtual currency regulation,” said CEO Tom Farley, who previously served as president of the New York Stock platform. “Receiving our BitLicense and Money Transmission License is a testament to our focus on building trusted, institutional-grade digital asset infrastructure. As a proud New Yorker, I look forward to Bullish contributing to the city’s financial ecosystem.”

Investor Takeaway

IPO Momentum and Market Valuation

The approval comes on the heels of Bullish’s $1.1 billion initial public offering in August, when it sold 30 million shares at $37 apiece. The stock more than doubled on its debut at the New York Stock platform before easing back, closing most recently at $51.36, up 0.6% from the previous session. Pre-market trading on Wednesday showed an additional 0.5% gain. The offering ranked among the largest crypto-related IPOs of 2025 and valued the company at more than $12 billion on its first day of trading.

Analysts at Bernstein initiated coverage last week with a $60 price target, projecting that Bullish could emerge as the second-largest institutional crypto platform later than Coinbase if it executes on its U.S. growth plans. The analysts pointed to Bullish’s liquidity pools, fee incentives, and institutional custody as key diverseiators at a time when regulators are tightening oversight of crypto platforms.

Challenging Coinbase’s Market Dominance

The U.S. crypto market is dominated by Coinbase, which manages more than $120 billion in assets under custody and controls roughly 56% of spot trading volume. Bullish, by contrast, reported $80 billion in cumulative trading volume on its non-U.S. platform in 2024. The gap remains significant, but analysts believe Bullish’s BitLicense approval and eventual U.S. rollout will allow it to tap into institutional demand that is looking for a compliant, alternative venue.

Bullish’s strategy emphasizes deep liquidity, zero-fee trading incentives, and transparency in custody — areas increasingly scrutinized by regulators later than the collapses of FTX and other platforms. Its backers include Thiel, hedge fund manager Alan Howard, and Hong Kong billionaire Richard Li. The firm was launched in 2021 by Block.one, the developer of the EOS blockchain, and has since repositioned itself as a global infrastructure and information services provider for institutional investors.

Industry observers note that winning over banks, hedge funds, and asset managers will be critical. Coinbase’s first-mover advantage and entrenched network effects present a challenge, but Bullish’s regulatory-first approach may resonate with institutions wary of compliance risk. “The BitLicense signals seriousness,” one analyst noted. “It tells clients Bullish is willing to play by the rules of the toughest jurisdiction.”

Investor Takeaway

What’s Next for Bullish

The BitLicense approval paves the way for Bullish’s U.S. launch, expected in 2026. The firm plans to expand trading, custody, and B2B offerings for banks and asset managers viewking regulated digital asset access. The company’s IPO proceeds will fund technology development and growth, while its institutional focus sets it apart from retail-heavy platforms.

For investors, the regulatory win underscores Bullish’s potential to become one of the most significant institutional platforms in the U.S. The coming months will test whether it can translate its momentum into liquidity, user adoption, and competitive positioning in a market still dominated by Coinbase.