BNY, the world’s largest custodian bank managing trillions in assets, has entered a strategic partnership with Finstreet Limited and ADI Foundation to introduce regulated digital asset custody services within Abu Dhabi Global Market (ADGM). This initiative marks the first time a major US global bank has brought institutional-grade crypto custody to the UAE.
The collaboration will first focus on securing Bitcoin and Ethereum, with plans to extend custody capabilities to stablecoins, tokenized real-world assets, and other regulated digital financial instruments. These developments remain contingent on regulatory approvals and final agreements.
The partnership is structured across three distinct operational layers. BNY provides its established custody framework, leveraging a Category 4 license under ADGM regulations, and builds on its earlier US-based digital asset custody services launched in 2022. Finstreet Limited offers access to Abu Dhabi’s institutional investment infrastructure, supported by its subsidiaries that hold licenses for trading, custody, and advisory services within ADGM. Meanwhile, the ADI Foundation contributes sovereign-grade blockchain technology via its ADI Chain, a Layer 2 blockchain designed to enhance custody, trade finance, and lending opportunities from Abu Dhabi globally.
Choosing ADGM as the base signals a deliberate focus on institutional rigor. The jurisdiction’s licensing framework, grounded in English common law, contrasts with Dubai's VARA approach, which primarily targets retail exchanges and Web3 startups. ADGM has attracted prominent crypto firms such as Galaxy Digital, Circle, and the stablecoin USDt by Tether, highlighting its reputation as a hub for institutional digital asset services.
The initiative aligns with broader UAE efforts to develop sovereign digital currency infrastructure. The International Holding Company (IHC), linked to Finstreet and ADI Foundation, recently unveiled DDSC, a dirham-backed stablecoin under Central Bank regulation, already seeing early adoption among government and institutional users. This context underscores BNY’s entry into a market actively shaping its own regulated digital ecosystem rather than merely embracing external crypto players.
The partnership aims to position Abu Dhabi as a global anchor for digital asset custody by leveraging local expertise, advanced blockchain infrastructure, and international custodial experience. It reflects a growing institutional confidence in the UAE’s crypto regulatory landscape and its capacity to support large-scale digital finance operations.