BNY, the world’s largest custodian overseeing $59 trillion in assets, is expanding its digital asset custody business in the UAE through local partners.
According to a press release issued on Thursday, the global financial services giant is working with Finstreet and the ADI Foundation to build a regulated digital asset infrastructure anchored in the Abu Dhabi Global Market (ADGM), the Abu Dhabi financial free zone that has become a hub for crypto companies and blockchain projects entering the Middle East region.
The initiative will initially focus on custody services for cryptocurrencies, including bitcoin. and ether (ETH), with plans to later expand into stablecoins and tokenized assets, the press release said.
“The UAE is entering a new phase of financial development, characterized by deeper markets, greater digital sophistication and stronger global connectivity,” Hani Kablawi, executive vice president of BNY, said in a statement. “With our world-class capabilities and scale in the capital markets, BNY is uniquely positioned to connect traditional and digital financial ecosystems in collaboration with our clients.
BNY’s move reflects a broader push by large financial institutions to introduce blockchain technology to traditional markets beyond crypto trading. Tokenization – the process of representing assets such as bonds, funds and stocks on blockchain networks – is gaining ground as companies seek faster settlement, more efficient collateral management and lower operational costs.
The bank’s entry into the UAE also highlights how quickly the Gulf region is becoming a center for digital asset financing. Abu Dhabi and Dubai have attracted crypto exchanges, stablecoin issuers and tokenization startups with regulatory frameworks designed to support digital assets while maintaining institutional oversight.
BNY’s involvement carries additional weight due to the bank’s size and role in traditional finance. The company oversees approximately $59 trillion in assets under custody and administration, making it the world’s largest custodian bank, and was the first major global systemically important U.S. bank to launch digital asset custody services.
The UAE has also deepened state-backed digital finance initiatives. IHC and other local institutions recently unveiled plans last month for a regulated dirham-backed stablecoin intended for government and institutional use.
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