BNY Expands Crypto Custody Into Abu Dhabi With Bitcoin and Ether
BNY, the world’s largest custody bank, has expanded its cryptocurrency services into Abu Dhabi, partnering with Finstreet and the ADI Foundation to build digital asset infrastructure in the UAE. The bank, which oversees $59 trillion in client assets, is starting the operation with Bitcoin and Ethereum custody.
The move marks BNY’s first dedicated regional presence for digital assets in the Middle East.
What BNY Is Doing in Abu Dhabi
BNY entered the Abu Dhabi market by teaming with Finstreet, a UAE-based financial infrastructure firm, and the ADI Foundation, a digital asset development body operating within the emirate. The three parties will collaborate on custody, settlement, and broader digital asset infrastructure for institutional clients in the region.
BNY’s custody platform holds and safeguards client assets without taking ownership, a service that institutional investors require before allocating capital to cryptocurrency at scale.
BNY Mellon, rebranded as BNY in 2023, is the world’s oldest bank and the largest asset custodian by assets under custody. The bank first announced plans to offer Bitcoin and Ether custody for U.S. clients in October 2022, receiving a no-objection letter from the New York Department of Financial Services.
Thursday’s Abu Dhabi expansion takes that capability into a new regulatory jurisdiction for the first time.
Background
BNY’s cryptocurrency custody effort has been gradual. The bank spent much of 2023 and 2024 building the technical and compliance framework needed to satisfy regulators in the United States before attempting international expansion.
Abu Dhabi has positioned itself as one of the most permissive jurisdictions for digital asset businesses, with the Abu Dhabi Global Market operating a dedicated virtual asset regulatory framework since 2018. The city has attracted custody providers, exchanges, and tokenization platforms seeking access to Gulf institutional capital.
Cryptocurrency custody, the secure holding of private keys on behalf of institutional clients, remains a specialized service.
Most traditional banks have moved cautiously, citing regulatory uncertainty and operational risk. BNY’s willingness to formalize a regional hub suggests confidence that the compliance infrastructure can scale across jurisdictions.
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What Comes Next
BNY has not disclosed a timeline for expanding Abu Dhabi services beyond Bitcoin and Ether.
Finstreet and the ADI Foundation will play a supporting role in local regulatory navigation, though neither firm has published terms of the partnership. Institutional crypto custody in the Gulf is a competitive market. Coinbase (COIN) and several European custodians have already established licensed operations in the UAE.
BNY’s entry adds a Wall Street name to that list and could attract U.S.-domiciled asset managers seeking a familiar counterparty for Gulf-based allocations.
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