BNY Targets UAE Crypto Market With New Custody Partnership

BNY is preparing to expand its digital asset custody operations into Abu Dhabi through a new collaboration with local firms Finstreet and $ADI Foundation.

The initiative will operate through Abu Dhabi Global Market (ADGM), the financial center known for its digital asset regulatory framework, and will initially focus on custody services for Bitcoin and Ethereum. The project also outlines future plans involving stablecoins, tokenized assets, and blockchain settlement systems tied to regulated financial activity in the region.

The move connects one of the world’s largest custodian banks with Abu Dhabi-based infrastructure providers as institutions continue building regulated frameworks for digital asset services. BNY currently controls approximately $59 trillion in assets under custody and administration.

Partnership Focuses on Regulated Digital Asset Infrastructure

According to the announcement, the collaboration combines BNY’s custody capabilities with Finstreet’s digital market infrastructure and $ADI Foundation’s blockchain systems. The companies said the project is designed to provide localized custody infrastructure tailored to clients operating within the UAE’s regulated environment.

The initial phase centers on institutional custody support for Bitcoin and Ethereum within Finstreet’s ecosystem. Later phases may expand into stablecoins, tokenized real-world assets, and additional regulated digital financial instruments connected to $ADI Foundation’s blockchain rails.

The companies stated that all planned activities remain subject to final agreements and regulatory approvals involving relevant subsidiaries and affiliates.

Ajay Bhatia, Principal Council Member at $ADI Foundation, said the collaboration combines Abu Dhabi’s regulatory framework with BNY’s financial infrastructure capabilities. He added that the initiative could support future activity tied to custody, trade finance, and lending infrastructure connected to $ADI Chain.

Abu Dhabi Continues Digital Asset Expansion

The project adds to broader digital asset activity in Abu Dhabi and the wider UAE financial sector. Hani Kablawi, Executive Vice Chair at BNY, said the UAE is entering a period marked by expanding capital markets and increased digital financial activity. He stated that the bank aims to connect traditional financial systems with digital asset infrastructure through collaboration.

Finstreet Co-Founder and Group Director Akshay Mahajan said the partnership is intended to broaden access to blockchain-based financial systems and digital assets within Abu Dhabi’s financial ecosystem.

The announcement also follows recent developments involving UAE-backed stablecoin infrastructure. IHC and several institutional partners recently introduced the Dirham-backed stablecoin DDSC, which is regulated by the Central Bank of the UAE and is currently progressing toward government and institutional adoption initiatives.

Related: BNY Mellon Launches First GENIUS Act-Compliant Money Market Fund for Stablecoin Issuers