BNY is to add Galaxy’s staking infrastructure to its Digital Asset Custody platform, allowing eligible institutional clients to access cryptocurrency custody and staking through a single servicing model, subject to regulatory approval.
The strategic collaboration will combine the safekeeping of digital assets with staking within one institutional workflow. Galaxy will provide the underlying staking technology and act as a design partner as BNY develops its wider digital asset platform.
Eligible clients will be able to use the service alongside existing BNY offerings, including fund accounting, tax reporting, payments and client reporting, where applicable.
The companies said integrating custody and staking could make it easier for institutions to participate in proof-of-stake networks. Instead of having to manage separate relationships with a custodian and a staking provider, clients would be able to keep their assets within BNY’s institutional custody framework while accessing Galaxy’s staking capabilities.
Neither company has said which proof-of-stake assets will initially be supported, when the service will launch or which clients will be eligible. The rollout remains dependent on regulatory review, and the organisations have not specified which regulators must approve the arrangement.
The agreement comes as major banks and financial institutions compete to meet growing institutional demand for digital asset services. BNY reported $62.6 trillion in assets under custody or administration as of 30 June.
Staking allows holders of eligible crypto assets to commit them to proof-of-stake networks in return for protocol rewards. However, the process brings operational, technical and regulatory issues that do not arise in the same way through conventional asset custody.
The proposed model is intended to offer asset managers and other institutions a more familiar way to access staking. BNY would provide the custody, administration and reporting framework, while Galaxy would operate the staking infrastructure.
For US institutions, the regulatory conditions surrounding the service will be significant. The companies have not said whether access will differ according to customer type or jurisdiction.
The staking deal follows a move by BNY in late July to place investment fund ownership records on-chain through a blockchain-enabled transfer agency platform.
Under that system, fund transactions and official shareholder records can be maintained on a shared digital ledger. BNY will continue to run its traditional transfer agency services alongside the blockchain-based platform.
The bank is therefore using blockchain technology not only to tokenise investment products, but also to modernise the record-keeping systems used in fund administration. The approach is designed to create a shared source of ownership information for institutions involved in processing and servicing funds.
BNY has also completed after-hours US Treasury transactions with stablecoin issuers. The bank reportedly plans to launch tokenised US Treasuries before the end of 2026 and carry out pilot transactions on a private blockchain during the year.
Its regulated digital asset operations are also expanding in Europe. In July, the European Securities and Markets Authority added BNY SA/NV, the bank’s Belgian subsidiary, to its interim Markets in Crypto-Assets register.
The National Bank of Belgium has authorised the subsidiary to provide crypto-asset custody and transfer services. The addition came as ESMA’s register reached 309 authorised providers after 15 new entries.
The approval gives BNY a regulated route to provide specified crypto services under the European Union’s MiCA framework. Alongside the Galaxy partnership and the on-chain fund platform, it forms part of the bank’s broader development of connected infrastructure covering custody, staking, tokenised assets and fund administration.
The next stage of the staking project will depend on regulatory clearance, as well as further details on supported assets, client eligibility and the launch timetable.
