BNY Mellon will integrate staking services via Galaxy Digital, enabling institutional clients to earn rewards on digital assets in custody.
BNY Mellon, the largest custodian bank, has partnered with Galaxy Digital to add staking capabilities to its digital asset custody platform. The collaboration allows eligible institutional clients to stake assets directly through BNY’s custody service, earning rewards while maintaining institutional-grade security and compliance standards. The service remains subject to regulatory approval, with Galaxy providing the underlying staking infrastructure and design support.
BNY Mellon launched digital asset custody services in 2022 and has since expanded its blockchain operations. Last week, the bank announced plans to move transfer agency record-keeping onto blockchain, aiming to streamline ownership tracking for tokenized funds. The partnership with Galaxy follows growing demand from institutions for integrated staking solutions without transferring assets to third-party providers.
The move reflects broader industry trends as traditional financial institutions increasingly adopt crypto-related services. Staking, a key feature of proof-of-stake blockchains, allows asset holders to participate in network validation while earning yields, aligning with institutional interest in yield-generating digital asset strategies.