The global financial services leader BNY, which manages $59 trillion in assets worldwide, is extending its digital asset custody operations to the United Arab Emirates. This expansion will be facilitated through partnerships with Finstreet and ADI Foundation, focusing on creating a regulated digital asset infrastructure within Abu Dhabi Global Market (ADGM), a key hub for crypto firms and blockchain projects in the Middle East.
A Thursday press release announced that initial efforts will center around providing custody services for cryptocurrencies such as bitcoin (BTC) and ether (ETH). Future plans include expanding into stablecoins and tokenized assets. Hani Kablawi, executive vice chair at BNY, emphasized in a statement that the UAE is advancing into a new era of financial development marked by deeper markets, increased digital sophistication, and enhanced global connectivity. He noted that BNY’s extensive capabilities position it uniquely to bridge traditional and digital finance ecosystems through client collaboration.
The bank’s move aligns with a broader trend among major financial institutions aiming to integrate blockchain technology into mainstream financial services beyond just crypto trading. The increasing adoption of tokenization — representing assets like bonds, funds, and equities on blockchain networks — is driven by the pursuit of quicker settlements, improved collateral management, and reduced operational costs.
BNY’s entry into the UAE underscores the Gulf region’s rapid emergence as a hub for digital asset finance. Regulatory frameworks in Abu Dhabi and Dubai have been designed to foster crypto exchanges, stablecoin issuers, and tokenization startups while ensuring institutional oversight.
Given its stature as the world’s largest custodian bank with $59 trillion under custody and administration, BNY’s involvement is significant. It was also the first major U.S. global systemically important bank to introduce digital asset custody services. The UAE has been proactive in state-backed digital finance initiatives, with IHC and other local institutions recently announcing plans for a regulated dirham-backed stablecoin intended for government and institutional use.