Bank of New York Mellon (BNY) said Tuesday that it has partnered with crypto financial services firm Galaxy to add crypto staking to its digital asset custody platform, extending its institutional digital asset offering.
Staking to be offered on-platform for institutional clients, pending approval
If regulators approve the rollout, institutional clients will be able to stake digital assets held in custody directly through BNY’s platform. Galaxy will provide the staking infrastructure and will also act as a design partner for BNY’s blockchain products as the bank expands its blockchain-based financial services.
For large institutions, earning staking rewards has often required moving tokens to third-party providers. That adds operational steps and introduces extra security considerations. Keeping staking within BNY’s existing custody platform would let clients use assets more efficiently while addressing compliance and security concerns that matter to major Wall Street firms.
BNY has continued building out its blockchain business since 2022
BNY has been developing its digital asset business since first launching crypto custody in 2022. As one of the world’s oldest and largest custodian banks, it oversees and administers assets totaling tens of trillions of dollars, making its moves in blockchain infrastructure closely watched across Wall Street and the broader financial market.
Alongside the planned staking service, BNY recently said it will move its transfer agency accounting business onto blockchain by creating a single Onchain Ownership Ledger. The bank said the change is intended to reduce reliance on multiple layers of intermediaries and improve transaction efficiency and data consistency.
Roadmap includes 24/7 Treasury settlement in 2027
BNY also outlined its broader digital asset roadmap. The bank expects to launch 24/7 U.S. Treasury settlement in 2027, covering both traditional Treasuries and tokenized Treasuries.
It also plans to begin testing tokenized U.S. Treasuries in a private blockchain environment before the end of this year, laying groundwork for larger-scale blockchain financial infrastructure in the future.
The partnership with Galaxy on staking adds to signs that traditional financial institutions are continuing to integrate blockchain technology and bring crypto asset services into existing financial infrastructure.