The American international financial services company BNY, formerly known as Bank of New York Mellon, has partnered with Galaxy Digital, a financial services company that specializes in cryptocurrency, to add staking capability to its digital asset custody platform. The deal, which both businesses revealed this week, would eliminate the requirement for institutional customers to move assets in order to participate by allowing them to receive staking rewards directly on tokens that are currently in BNY’s possession. In addition to providing the core staking technology,
Galaxy will collaborate with BNY as a design partner as the bank expands the range of blockchain services it offers. The news indicates that one of the biggest custodians in conventional banking is moving farther into blockchain-native yield products, even if the functionality still requires regulatory approval before it can be used by clients.
We’re collaborating with @BNYglobal to advance digital asset infrastructure for institutional markets – including staking support on BNY’s Digital Asset Custody platform, bringing digital asset custody and staking together in a single institutional servicing model.
Pairing our… pic.twitter.com/yFiVXfcmEp
— Galaxy (@galaxyhq) August 4, 2026
Why Keeping Staking In-House Matters For Big Investors
Staking, for anyone unfamiliar, involves locking up certain crypto holdings to help validate and secure a blockchain network, with participants earning rewards in return for that commitment. For smaller retail holders, this process is fairly straightforward. But for institutions managing large, custodied positions, moving assets to a separate staking provider introduces operational friction, added counterparty exposure, and extra steps that many compliance teams would rather avoid.
By folding staking directly into its existing custody platform, BNY is essentially letting clients earn yield on assets without ever having the tokens leave its regulated environment a detail that’s likely to appeal strongly to risk-conscious institutional players.
A Bank That’s Been Building Its Crypto Footprint For Years
This isn’t BNY’s first move into digital assets, nor is it likely to be its last. The bank launched crypto custody services back in 2022 and has been layering on capabilities steadily since, all while overseeing tens of trillions of dollars in assets under custody and administration a scale that means whatever BNY does in blockchain infrastructure tends to draw attention across the broader financial sector.
Just recently, the bank revealed plans to move its core transfer agency record-keeping onto blockchain rails entirely, consolidating ownership records into a single onchain ledger designed to cut down on the usual web of intermediaries involved in traditional securities administration.
More Blockchain Upgrades Already On The Roadmap
The Galaxy partnership arrives alongside a string of other blockchain-related initiatives BNY has lined up. The bank has already committed to rolling out around-the-clock settlement for both traditional and tokenized U.S. Treasuries starting in 2027, and it’s set to begin testing tokenized Treasuries on a private blockchain before this year wraps up.
Taken together, these moves paint a picture of a legacy financial institution methodically rebuilding pieces of its infrastructure around blockchain technology, rather than treating crypto as a side experiment separate from its core custody and settlement business.
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment