BNY, the world’s largest custody bank overseeing approximately $59 trillion in assets, is extending its digital-asset custody operations into the United Arab Emirates through a new partnership with Abu Dhabi-based Finstreet and the ADI Foundation. The initiative will initially support custody services for Bitcoin (BTC) and Ethereum (ETH), with stablecoins and tokenised real-world assets positioned as the next phase of expansion.
The offering will operate within the regulatory framework of the Abu Dhabi Global Market (Abu Dhabi Global Market), reinforcing Abu Dhabi’s position as a regulated hub for institutional digital-asset infrastructure outside Western financial centres.
A regulated custody model built on institutional infrastructure
Under the structure of the partnership, BNY provides the regulated custody backbone, leveraging its institutional-grade security, audit standards, and balance sheet strength that already underpin its traditional asset custody operations.
Finstreet contributes the regional market infrastructure layer, connecting custody services with trading, settlement, and broader capital markets systems. Meanwhile, ADI Foundation plays a coordinating role within the local ecosystem, helping ensure alignment with Abu Dhabi’s digital-asset regulatory environment.
Together, the three-part structure reflects an increasingly standard institutional model in digital assets: custody alone is no longer sufficient. Banks and asset managers now require integrated systems that link custody with execution venues, liquidity providers, and settlement rails.
Abu Dhabi’s growing role in institutional crypto
Abu Dhabi has steadily positioned itself as a competing jurisdiction for regulated digital-asset services, building frameworks designed to attract institutional capital earlier than some Western markets. The ADGM ecosystem in particular has become a focal point for firms seeking regulatory clarity combined with financial-market infrastructure.
BNY’s entry adds a significant signal to that trajectory. As one of the most established custodians in global finance, its move into the region is likely to influence how regional banks, family offices, and institutional allocators evaluate counterparty risk in crypto exposure.
Beyond Bitcoin and Ethereum: stablecoins and tokenisation
While the initial rollout focuses on BTC and ETH custody, the longer-term roadmap points to stablecoins and tokenised real-world assets.
Stablecoin custody is increasingly tied to institutional payment flows and cross-border settlement use cases, while tokenisation represents a broader shift toward on-chain financial instruments, including equities, bonds, and fund structures. Given BNY’s scale in traditional asset servicing, tokenised instruments are viewed as a natural extension of its existing business rather than a separate vertical.
Competitive pressure across global custody markets
BNY’s expansion into Abu Dhabi also intensifies competition among global custodians and digital-asset infrastructure providers operating in the region. Firms such as Standard Chartered’s Zodia Custody, BitGo, and Anchorage Digital already maintain institutional offerings in similar jurisdictions, but BNY’s scale and balance sheet introduce a higher institutional benchmark for counterparties.
The move is also likely to accelerate timelines across other major global banks, including JPMorgan, Citi, and State Street, all of which have been developing digital-asset custody capabilities.
What to watch next
Market participants will be closely monitoring three developments: the timeline for stablecoin custody rollout, the selection of initial tokenised asset classes, and competitive responses from other global custodians expanding in the Gulf region.
With this launch, BNY transitions from observer to active competitor in institutional crypto custody across regulated Middle Eastern markets—signaling a further convergence between traditional finance infrastructure and digital-asset systems.
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