BNY Partners With Galaxy to Add Staking to Custody Platform

BNY, the largest custodian bank in the US, is partnering with crypto financial services firm Galaxy to offer digital-asset staking to institutional clients.

CoinDesk reported on August 4 that BNY and Galaxy announced a partnership to add staking to BNY’s digital-asset custody platform. Subject to regulatory approval, institutional investors will be able to stake assets held on BNY’s platform without moving them to a separate venue.

Galaxy will provide the staking infrastructure and serve as a design partner as BNY expands its blockchain services. Staking allows holders of certain cryptocurrencies to deposit tokens into a network, help secure the blockchain and earn rewards in return.

BNY has steadily expanded its digital-asset business since launching crypto custody services in 2022. It now oversees tens of trillions of dollars in assets under custody and administration. More recently, the bank has been working to move core transfer-agent recordkeeping onto blockchain rails and build a single on-chain ownership ledger.

BNY also plans to introduce 24-hour settlement for traditional US Treasuries and tokenized US Treasuries by 2027. It aims to begin testing tokenized Treasuries on a private blockchain later this year.