BNY Mellon expanding its digital asset custody platform to include crypto staking services.
DeFi & Yields ·
BNY announced a partnership with Galaxy to integrate staking capabilities into its digital asset custody platform, pending regulatory approval. The arrangement will enable institutional clients to earn staking rewards on assets held in BNY's custody without transferring tokens to external providers. Galaxy will supply the staking infrastructure and serve as a design partner as BNY expands its blockchain services.
Staking allows digital asset holders to help secure blockchain networks by locking tokens in exchange for rewards. For large institutional investors, accessing staking through the same platform that already custodies their assets eliminates operational friction and counterparty risk. The move represents part of BNY's broader effort to deepen its institutional crypto offerings.
BNY has accelerated blockchain expansion since launching crypto custody services in 2022. The bank recently moved its transfer agency record-keeping onto blockchain and plans to introduce around-the-clock settlement for tokenized U.S. Treasuries in 2027, with testing of tokenized Treasuries on a private blockchain expected before year-end. What remains unclear is the timeline for regulatory approval of the staking service or the specific digital assets eligible for the initial offering.