The world’s largest custodian bank, BNY, is making a landmark move into digital assets by launching regulated crypto custody services in Abu Dhabi. With $59 trillion in assets under custody and administration, the Wall Street giant will initially support Bitcoin and Ethereum custody through a partnership with Finstreet and the ADI Foundation, operating within the Abu Dhabi Global Market (ADGM) financial free zone.
The initiative was announced on May 7, 2026, and represents one of the biggest institutional crypto developments tied to the UAE. BNY’s entry into Abu Dhabi comes as the region has built a reputation for crypto-friendly regulations, attracting tokenization projects and blockchain firms. The bank aims to create a “localized, secure, compliant and scalable digital asset custody solution” for UAE clients, combining its own custody expertise with Finstreet’s market infrastructure and ADI Foundation’s blockchain systems.
Initially, the service will focus solely on custodianship for Bitcoin and Ethereum. Future phases are expected to include stablecoins, tokenized real-world assets, and broader blockchain settlement infrastructure. This expansion signals that traditional finance is moving beyond simple crypto trading toward fully-fledged blockchain-based financial infrastructure, with a strong emphasis on regulatory clarity and institutional-grade security.
Hani Kablawi, Executive Vice Chair at BNY, stated: “The UAE is entering a new phase of financial development, characterized by deeper markets, greater digital sophistication and stronger global connectivity.” The move not only boosts the UAE’s ambitions to become a global digital asset hub but also underscores the growing integration of cryptocurrencies into conventional finance. For investors, the decision by a major custodian to build such infrastructure reinforces the long-term demand outlook for Bitcoin and Ethereum, despite near-term market volatility. At the time of the announcement, Bitcoin’s price hovered near $80,900.
