BNY Adds Crypto Staking via Galaxy Partnership
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- BNY announced plans Tuesday to add staking to its digital asset custody platform via a partnership with Galaxy (GLXY), which will provide the staking infrastructure and serve as a design partner.
- Institutional clients of BNY will be able to earn staking rewards on digital assets held in BNY custody, removing the need to transfer tokens to a separate provider — subject to regulatory approval.
- BNY oversees tens of trillions of dollars in assets under custody and administration, and the bank has steadily expanded its digital asset business since launching crypto custody in 2022.
- BNY recently said it was shifting its core transfer agency record-keeping onto blockchain technology, creating a single onchain ownership ledger it says will reduce reliance on multiple intermediaries.
- BNY plans to introduce around-the-clock settlement for traditional and tokenized U.S. Treasuries in 2027, and to begin testing tokenized Treasuries on a private blockchain before the end of this year.
Why it matters: BNY — one of the world's largest custodians with tens of trillions in assets — is layering staking onto its crypto custody platform rather than forcing clients to move assets elsewhere, a structural convenience that makes yield-generating crypto services viable for institutions bound by segregation rules. The deal also gives Galaxy a marquee banking distribution channel for its staking infrastructure.
