BNY, the world's largest custodian bank formerly known as Bank of New York Mellon, announced a strategic collaboration with Galaxy Digital to integrate staking services into its digital asset custody platform. The partnership, revealed on August 4, 2026, will allow institutional clients to earn staking rewards on eligible proof-of-stake assets without moving them to an external provider. The service remains subject to regulatory approval.
BNY entered cryptocurrency custody in 2022, and the addition of staking marks a significant expansion of its digital asset capabilities. Through Galaxy's expertise in proof-of-stake networks, the collaboration aims to deliver an institutional-grade experience combining custody, fund accounting, tax reporting, payments, and client reporting in a single workflow. Galaxy will also serve as a design partner to further develop BNY's digital asset infrastructure.
"As digital assets continue to evolve, clients want more than safekeeping alone — they want a broader set of capabilities delivered through an institutional-grade model," said Carolyn Weinberg, Chief Product and Innovation Officer at BNY. "With the addition of staking, we will be providing clients with a more comprehensive digital asset custody offering built on the governance, controls and resiliency they expect from BNY."
Steve Kurz, Global Co-Head of Digital Assets at Galaxy, added: "The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows. Our collaboration with BNY brings that work into a framework the world's largest institutions can trust."
The move addresses growing institutional demand for staking, particularly for assets like Ethereum, which transitioned to proof-of-stake in 2022. Many institutional investors have been hesitant due to regulatory uncertainties and operational complexities, but BNY's regulated, secure framework could alleviate those concerns. As of June 30, 2026, BNY oversees $62.6 trillion in assets under custody and/or administration and $2.2 trillion in assets under management.
The collaboration highlights a broader trend of traditional financial institutions integrating digital assets into wealth management strategies. BNY also plans to introduce tokenized U.S. Treasuries on its private blockchain this year, further blurring the lines between traditional finance and crypto markets.
