BNY Adds Staking to Its Crypto Custody Platform
Institutional clients will soon be able to stake tokens inside BNY’s custody platform, with Galaxy as the infrastructure partner. The rollout still needs regulatory approval.
Key Takeaways
- BNY is adding staking to its digital asset custody platform for institutional clients.
- Galaxy will provide the infrastructure and act as a design partner for the new service.
- The staking rollout still needs regulatory approval.
BNY is widening its digital asset custody platform to include staking after selecting crypto financial services firm Galaxy to handle the infrastructure. The offering is aimed at institutional clients that already hold digital assets with BNY, although it still needs regulatory approval before it can go live.
Staking Through the Same Custody Layer
Under the new setup, clients will be able to stake tokens without first transferring them to another provider. For large institutions, that keeps custody and staking under one roof, which can make operations much simpler. Galaxy is acting as both the infrastructure partner and the design partner as BNY keeps building out its blockchain-based services.
Staking lets holders of certain crypto assets lock up their tokens to help support blockchain networks in exchange for rewards. For institutional investors, the main appeal is often less about the yield itself and more about streamlining custody and staking in one place.
BNY Builds on 2022
BNY, formerly Bank of New York Mellon, has offered crypto custody since 2022 and has gradually added more digital asset services since then. The bank says it oversees and administers tens of trillions of dollars in assets, so any push deeper into blockchain infrastructure tends to draw attention across the financial industry.
That broader plan is also showing up in other initiatives. BNY recently said it is shifting its core recordkeeping for transfer agency work to blockchain technology, with the aim of creating a single onchain ownership ledger and reducing reliance on multiple intermediaries. The bank also plans to introduce 24-hour settlement in 2027 for traditional and tokenized U.S. Treasuries, and it expects to test tokenized Treasuries on a private blockchain before the end of this year.
Why This Matters
For European crypto readers, this move is another sign that traditional custodians are moving beyond storage and into added services like staking. That could shape how institutional crypto access develops, especially as major financial firms keep trying to combine custody, settlement, and blockchain infrastructure in a single model. Tax treatment for staking is still unresolved as well, and in the U.S. the industry is pushing for more clarity on taxes on mining and staking.
