Summary
- BNY said Tuesday it plans to add staking to its digital asset custody platform through a partnership with Galaxy.
- The service will let institutional clients earn staking rewards without moving assets outside BNY's custody.
- The move marks BNY's latest expansion of blockchain-based services for institutional investors.
BNY has tapped crypto financial services firm Galaxy (GLXY) to add staking capabilities to its digital asset custody platform, the companies announced Tuesday.
The new service will allow institutional clients to stake digital assets held in custody through BNY's platform, pending regulatory approval. Galaxy will provide the staking infrastructure while also serving as a design partner as BNY expands its blockchain-based services.
Staking allows holders of certain crypto assets to help secure blockchain networks by locking up their tokens in exchange for rewards. For large investors, offering staking through the same platform that holds their assets removes the need to transfer tokens to a separate provider.
BNY, formerly known as Bank of New York Mellon, has steadily expanded its digital asset business since launching crypto custody services in 2022. The bank oversees tens of trillions of dollars in assets under custody and administration, making its moves into blockchain infrastructure closely watched across the financial industry.
The financial services firm recently said it was shifting its core transfer agency record-keeping onto blockchain technology, creating a single onchain ownership ledger that it said will reduce reliance on multiple intermediaries. It also plans to introduce around-the-clock settlement for traditional and tokenized U.S. Treasuries in 2027 and begin testing tokenized Treasuries on a private blockchain before the end of this year.