BNY has selected Galaxy Digital (NASDAQ: GLXY) to provide staking infrastructure for its digital asset custody platform, as announced Tuesday. According to reports from PRNewswire, the partnership will enable institutional clients to earn staking rewards without transferring assets outside BNY's custody framework. Staking allows holders of certain crypto assets to help secure blockchain networks by locking up their tokens in exchange for rewards, providing a passive income opportunity for institutional investors. The service is pending regulatory approval before becoming available to clients, with the collaboration officially announced on August 4, 2026. However, the companies have not disclosed which proof-of-stake assets the platform will support or when the service will become available.
The new service addresses a key operational challenge for institutional investors by removing the need to transfer tokens to separate providers for staking services. As reported by PRNewswire, Galaxy will provide the staking infrastructure while also serving as a design partner as BNY expands its blockchain-based services. This integration allows large investors to maintain custody of their assets while participating in network security through staking rewards. The setup keeps assets on the same custody platform instead of being transferred to a separate staking provider, streamlining access for institutional investors seeking yield on eligible digital assets. Eligible institutional clients can access staking alongside BNY services such as fund accounting, tax reporting, payments and client reporting, where applicable. As reported by LeapRate, Galaxy is helping BNY build out other parts of its digital asset platform, acting as a kind of behind-the-scenes partner to expand the platform's capabilities. The arrangement combines asset safekeeping and staking within a single institutional workflow, potentially simplifying institutional participation in proof-of-stake networks.
Carolyn Weinberg, Chief Product and Innovation Officer at BNY, emphasized the strategic importance of expanding beyond traditional safekeeping services. "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," Weinberg stated. Steve Kurz, Global Co-Head of Digital Assets at Galaxy, highlighted the transformative potential of the collaboration, noting that "The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows." The partnership brings together BNY's Digital Asset Custody platform with Galaxy's expertise in proof-of-stake network to provide clients with an integrated, institutional-grade experience for participating in staking through a secure, streamlined workflow. As reported by LeapRate, Galaxy already uses BNY's custody platform, which made this partnership a natural fit, bringing together trusted technology with proven institutional experience.
BNY, formerly known as Bank of New York Mellon, has steadily expanded its digital asset business since launching crypto custody services in 2022. According to reports from PRNewswire, 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 bank serves over 90% of Fortune 100 companies and nearly all the top 100 banks globally, making its moves into blockchain infrastructure closely watched across the financial industry. The staking agreement follows BNY's move in late July to bring investment fund ownership records onchain through a blockchain-enabled transfer agency platform. The platform will allow fund transactions and official shareholder records to be maintained on a shared digital ledger, with BNY continuing to operate its traditional transfer agency services alongside the blockchain-based system. The bank also plans to begin testing tokenized Treasuries on a private blockchain before the end of this year, with plans to introduce tokenized U.S. Treasuries before the end of 2026.
BNY's Belgian subsidiary recently received MiCA authorization for crypto custody and transfers, providing a regulated route to offer specified crypto services under the European Union's MiCA framework. The National Bank of Belgium authorized the subsidiary to provide crypto-asset custody and transfer services, with ESMA adding BNY SA/NV to its interim Markets in Crypto-Assets register in July. This approval gives BNY a regulated pathway to expand its digital asset operations across Europe. The regulatory-review condition remains important for the staking service, as the companies have not disclosed which regulators must approve the service or whether access will vary by client type or jurisdiction. The launch remains subject to regulatory review, with the companies not specifying which proof-of-stake assets the platform will support or when the service will become available.
