BNY Taps Galaxy for Crypto Staking on Custody Platform
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- BNY announced Tuesday it plans to add crypto staking to its digital asset custody platform through a partnership with Galaxy (GLXY), pending regulatory approval.
- The service will let institutional clients earn staking rewards on digital assets held in BNY custody without transferring tokens to a separate provider.
- Galaxy will provide the staking infrastructure and serve as a design partner as BNY expands its blockchain-based services.
- BNY, which oversees tens of trillions of dollars in assets under custody and administration, launched crypto custody services in 2022 and has steadily expanded its digital asset business since.
- BNY recently said it is shifting core transfer agency record-keeping onto blockchain and plans around-the-clock settlement for traditional and tokenized U.S. Treasuries by 2027.
Why it matters: For BNY's institutional clients holding digital assets in custody, staking rewards become accessible without the operational and counterparty risk of transferring tokens to a third-party platform. Because BNY oversees tens of trillions in assets, its custody-based staking could pull in flows that previously required leaving the bank's rails.
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