TL;DR
- BNY announced it will integrate staking into its digital asset custody platform through a partnership with Galaxy.
- The new service will allow institutional clients to stake their assets without needing to transfer them to an external provider.
- The bank also plans to offer 24/7 settlement for tokenized Treasuries in 2027 and testing on a private blockchain before year-end.
BNY and Galaxy partnered to offer institutional staking on the bank’s digital asset custody platform, according to what both companies announced. The service will be subject to regulatory approval and will position Galaxy as an infrastructure provider and design partner in the expansion process.
The agreement allows BNY’s institutional clients to stake their assets without moving them to a separate custodian, simplifying an operation that historically required transferring tokens outside the custody system. Staking consists of locking certain cryptocurrencies to participate in the validation of blockchain networks in exchange for rewards, a practice increasingly in demand among large investors seeking returns on their holdings.
BNY Builds Its Blockchain Infrastructure Step by Step
BNY, formerly known as Bank of New York Mellon, launched its crypto custody services in 2022 and has since consistently expanded its presence in the blockchain industry. The bank manages tens of trillions of dollars in assets under custody and administration, making each of its decisions in the sector a benchmark for the global financial industry.
This expansion will not be limited to staking alone. The institution recently announced it will migrate its central stock transfer registry to blockchain technology, creating a unified on-chain ownership ledger aimed at reducing dependence on multiple intermediaries. It also plans to introduce continuous-hour settlement for traditional and tokenized Treasuries in 2027, and to begin testing tokenized Treasuries on a private blockchain before the end of 2026.
Galaxy’s incorporation as a partner makes clear that there is a trend among large custodians: delegating specialized technical infrastructure to firms native to the ecosystem while retaining the direct relationship with the institutional client. For Galaxy, the agreement is essential to strengthen its position as a financial services provider for traditional entities seeking to enter the digital asset market.
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