BNY, the world’s largest custodian bank overseeing $59 trillion in assets, is expanding its digital asset custody business to the United Arab Emirates through local partners.
According to a press release on Thursday, the global financial giant is working with Finstreet and the ADI Foundation to build regulated digital asset infrastructure anchored in the Abu Dhabi Global Market (ADGM), the financial free zone in Abu Dhabi that has become a hub for crypto firms 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 to 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 connections,” Hani Kablawi, executive vice chair at BNY, said in a statement. “With our world-class capabilities and scale across capital markets, BNY is uniquely positioned to connect traditional and digital financial ecosystems in partnership with our clients.”
BNY’s move reflects a broader push by major financial institutions to bring blockchain technology into mainstream markets beyond crypto trading. Tokenization – the process of representing assets such as bonds, funds and stocks on blockchain networks – is gaining traction as companies look for faster settlement, more efficient collateral and lower operating costs.
The bank’s entry into the United Arab Emirates also highlights how quickly the Gulf region is emerging as a center for digital asset finance. 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 commitment is even more important because of the bank’s scope and role in traditional financing. The firm oversees approximately $59 trillion in assets under custody and administration, making it the world’s largest custodian, and was the first major US global systemically important bank to launch digital asset custody services.
The UAE has also pushed deeper into government-backed digital finance initiatives. The IHC and other local institutions recently unveiled plans last month for a regulated dirham-backed stablecoin aimed at government and institutional use.
Read more: BNY CEO says future of crypto goes through big banks
