BNY Expands Digital-Asset Custody in UAE, Sets Up Abu Dhabi Base

BNY, the world’s largest custodian bank, is expanding its digital-asset custody business in the United Arab Emirates.

The bank is working with Finstreet and the ADI Foundation to build regulated digital-asset infrastructure in Abu Dhabi Global Market, or ADGM, CoinDesk reported on May 7. ADGM has emerged as a key hub for crypto and blockchain companies in the Middle East.

The project will initially focus on custody services for major cryptocurrencies including Bitcoin and Ether. BNY plans to expand the offering later to stablecoins and tokenized assets.

BNY said the effort is intended to link traditional finance with the digital-asset ecosystem. “The UAE has entered a phase where the digital transformation of financial markets is accelerating,” BNY Vice Chairman Hani Kablawi said. He added that BNY would connect traditional and digital finance through its global capital-markets capabilities.

The expansion underscores a broader push by major financial institutions to incorporate blockchain technology into existing financial infrastructure. Demand for tokenization has also been rising as bonds, funds and stocks are issued and managed on blockchain networks.

The UAE is rapidly emerging as a crypto hub, supported by a regulation-friendly environment. Abu Dhabi and Dubai have broadened the market by attracting exchanges, stablecoin issuers and tokenization firms.

BNY oversees and services about $59 trillion in assets and was the first major bank to introduce digital-asset custody services.