BNY to add crypto staking to digital asset custody platform
BNY is expanding its digital asset custody platform to include crypto staking services for institutional clients, with infrastructure support from Galaxy. This move follows the bank's broader strategy to integrate blockchain technology into its core financial services and record-keeping.
Why it matters
The entry of a major financial institution like BNY into crypto staking signals increasing institutional adoption and legitimization of blockchain infrastructure in traditional finance.
The new service will allow institutional clients to stake digital assets held in custody through BNY's platform, pending regulatory approval. Galaxy will provide the staking infrastructure while also serving as a design partner as BNY expands its blockchain-based services.
Staking allows holders of certain crypto assets to help secure blockchain networks by locking up their tokens in exchange for rewards. For large investors, offering staking through the same platform that holds their assets removes the need to transfer tokens to a separate provider.
BNY, formerly known as Bank of New York Mellon, has steadily expanded its digital asset business since launching crypto custody services in 2022. The bank oversees tens of trillions of dollars in assets under custody and administration, making its moves into blockchain infrastructure closely watched across the financial industry.
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