BNY Expands Crypto Custody Services to Abu Dhabi With Bitcoin and Ethereum Support

BNY, formerly known as BNY Mellon, has announced the launch of crypto custody services in Abu Dhabi, marking a major step in the bank’s expansion into the digital asset sector. The financial giant revealed on Thursday that it will initially support Bitcoin and Ethereum custody, with future plans to include stablecoins, tokenized real-world assets (RWAs), and other regulated digital financial products.

The move comes through a strategic partnership with Finstreet Limited and the ADI Foundation within the Abu Dhabi Global Market (ADGM). As the world’s largest custodian bank, managing approximately $59.4 trillion in assets under custody, BNY becomes the first U.S.-based global systemically important bank (G-SIB) to provide crypto custody solutions in the UAE.

The collaboration is designed to strengthen Abu Dhabi’s position as a leading global digital asset and blockchain hub. BNY will combine Finstreet’s digital market ecosystem with the ADI Foundation’s blockchain infrastructure to deliver secure, compliant, and scalable crypto custody solutions tailored for the UAE market.

Initially, the service will focus on custody support for Bitcoin and Ethereum. However, the companies confirmed plans to expand into stablecoins, tokenized real-world assets, and additional regulated blockchain-based instruments as demand for digital finance continues to grow.

Ajay Bhatia, Principal Council Member at the ADI Foundation, described the partnership as an important milestone for Abu Dhabi’s digital asset ambitions. Meanwhile, Hani Kablawi, Executive Vice Chair at BNY, said the initiative will help bridge traditional finance with blockchain technology by bringing more financial instruments on-chain.

BNY has already played a significant role in the crypto sector by acting as custodian for several crypto ETFs, including products linked to Bitcoin investments. The bank also introduced tokenized deposit solutions for institutional investors earlier this year, further expanding its digital asset strategy.

Following the announcement, Bitcoin and Ethereum prices recorded modest gains, reflecting positive market sentiment surrounding institutional crypto adoption.