BNY Expands Digital Asset Custody Services to UAE Through Local Partnerships

BNY, the world's largest custodian bank overseeing roughly $59 trillion in assets, is expanding its digital asset custody services into the UAE through partnerships with Finstreet and the ADI Foundation in Abu Dhabi Global Market. The expansion responds to surging institutional demand for secure custody as the UAE builds its digital asset regulatory framework. BNY is enhancing its platform to include on-chain, near-real-time settlement via tokenized deposits.

BNY UAE custody expansion

• ▪BNY is partnering with Finstreet and the ADI Foundation in Abu Dhabi Global Market (ADGM).
• ▪Hani Kablawi is the Executive Vice Chair at BNY.
• ▪BNY oversees roughly $59 trillion in assets under custody and administration.
• ▪BNY is expanding its digital asset custody services into the UAE through local partnerships.
• ▪BNY is enhancing its digital asset platform to include on-chain, near-real-time settlement via tokenized deposits.

UAE digital asset strategy

• ▪The UAE is building its digital asset regulatory framework.
• ▪Institutional demand for secure digital asset custody in the UAE is surging.
• ▪Dominic Longman stated that digital assets are now intrinsic to the UAE government's DNA.
• ▪IHC and other UAE local institutions recently unveiled plans for a regulated Dirham-backed stablecoin aimed at government and institutional use.

Evolution of institutional custody

• ▪Digital asset custody now serves as the bridge that enables digital assets to be used as collateral, for settlement, and for payments without leaving a regulated environment.
• ▪The risk of institutional digital asset adoption has moved from reputational concerns to operational integration challenges.
• ▪Major traditional financial custodians are aggressively entering the crypto market to offer secure, compliant services.

Tokenized asset infrastructure

• ▪A tokenized treasury bond held in BNY's custody can instantly flow to a client in Abu Dhabi as collateral, creating a seamless global value loop.
• ▪BNY's partnerships with local UAE institutions lay the rails for tokenized real-world assets and stablecoins.
• ▪Digital asset custody has evolved into the critical middleware of the future financial system that allows trillions of dollars in traditional assets to migrate onto the blockchain.

Localized partnership model

• ▪Dominic Longman is the managing director of Middle East and Africa at Zodia Custody.
• ▪Localization is the new key to global expansion in crypto.
• ▪The ADI Foundation is focused on sovereign digital economies.
• ▪Institutions are building bespoke, compliant digital asset gateways in specific high-growth jurisdictions rather than one-size-fits-all global platforms.

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