Summary
BNY is integrating cryptocurrency staking into its Digital Asset Custody platform through a partnership with Galaxy, enabling institutional clients to earn staking rewards without transferring assets outside the bank's custody environment.
Key Takeaways
Key Takeaways
- By embedding Galaxy's staking infrastructure directly into its custody platform, BNY eliminates the need for clients to transfer assets to third-party staking providers, reducing operational complexity and counterparty risk.
- The combined offering is designed to integrate custody, staking, fund accounting, tax reporting, payments, and client reporting within a single institutional workflow.
- The service remains subject to regulatory approvals, and neither BNY nor Galaxy has disclosed which digital assets will initially be eligible for staking.
- With approximately $62.6 trillion in assets under custody and administration as of June 30, 2026, BNY's continued investment in blockchain infrastructure is closely watched across traditional finance and the digital asset industry.
BNY is expanding its digital asset platform by introducing cryptocurrency staking for institutional clients through a partnership with Galaxy, allowing investors to stake eligible digital assets without moving them outside the bank's custody environment.
The service will enable eligible clients to access staking directly from BNY's Digital Asset Custody platform, while Galaxy will provide the underlying staking infrastructure and serve as a design partner for the continued development of the bank's digital asset services. The rollout remains subject to applicable regulatory approvals.
The launch marks another step in the evolution of institutional digital assets, as traditional custodians move beyond safeguarding cryptocurrencies to offering blockchain-native financial services.
Bringing Staking Inside Institutional Custody
Institutional investors have traditionally needed to transfer digital assets from regulated custodians to specialist staking providers to earn staking rewards, creating additional operational complexity and counterparty risk.
By integrating Galaxy's staking infrastructure directly into its custody platform, BNY aims to eliminate that step, allowing clients to participate in proof-of-stake networks while maintaining their existing institutional custody arrangements.
The combined offering is expected to support a broader digital asset servicing model that integrates custody, staking, fund accounting, tax reporting, payments, and client reporting within a single workflow.
Neither company disclosed which cryptocurrencies will initially be supported, stating only that the service will cover eligible digital assets following regulatory review.
Growing Demand for Yield Within Regulated Infrastructure
The partnership reflects increasing institutional demand for yield-generating opportunities within regulated digital asset infrastructure.
Staking allows holders of proof-of-stake digital assets to help validate blockchain networks while earning protocol rewards, making it an increasingly attractive component of institutional investment strategies.
For asset managers, hedge funds, and other professional investors, integrating staking into an established custody platform simplifies operations while reducing reliance on multiple third-party providers.
BNY Continues to Expand Its Blockchain Strategy
The announcement builds on BNY's broader digital asset strategy. Since launching its Digital Asset Custody platform in 2022, the bank has steadily expanded its blockchain capabilities beyond custody.
Earlier this year, BNY expanded its institutional crypto custody business into Abu Dhabi through a partnership with Finstreet and the ADI Foundation, extending its digital asset infrastructure into the UAE. The bank has also advanced tokenization initiatives, including its collaboration with Goldman Sachs on tokenized money market funds, while exploringtokenized deposits for on-chain payments.
With approximately $62.6 trillion in assets under custody and administration as of June 30, 2026, BNY remains the world's largest custodian bank, making its continued investment in blockchain infrastructure closely watched across both traditional finance and the digital asset industry.
Staking Becomes Part of the Institutional Banking Stack
BNY's latest offering reflects a broader shift in how global financial institutions are approaching digital assets.
Rather than treating blockchain services as standalone products, banks are increasingly integrating custody, tokenization, payments, settlement, and staking into their core institutional platforms.
For BNY, staking represents another building block in a broader blockchain strategy that spans custody, tokenized assets, and on-chain financial infrastructure. As regulatory clarity continues to improve, the industry's largest custodians are positioning themselves to offer a full suite of digital asset services, signaling that blockchain-native capabilities are becoming part of mainstream institutional banking rather than remaining niche cryptocurrency offerings.