- The BNY will offer its custodial services for Bitcoin and Ethereum via Abu Dhabi Global Market.
- The partnership will also focus on stablecoins and asset tokenization in the UAE.
- Abu Dhabi continues to grow its blockchain-based finance business with global institutional partners.
BNY Mellon (BNY) is preparing to expand its digital asset operations into the United Arab Emirates through a new crypto custody partnership based in Abu Dhabi. The financial services company announced on May 7 that it will work with Finstreet Limited and ADI Foundation to provide regulated digital asset custody services through Abu Dhabi Global Market (ADGM), one of the region’s main financial centers for blockchain and crypto activity.
The initiative will initially focus on custody support for Bitcoin and Ethereum. According to the announcement, the companies also intend to expand the platform later to support stablecoins, tokenized real-world assets, and other regulated digital financial instruments.
The BNY crypto custody initiative remains subject to final agreements and regulatory approvals. The companies stated that the collaboration aims to create a localized, compliant, and scalable custody infrastructure tailored for institutions operating in the UAE’s regulated financial environment.
BNY Mellon currently oversees approximately $59.4 trillion in assets under custody and administration. The company also stated that it is the first U.S. global systemically important bank (G-SIB) to offer crypto custody services in the region.
BNY Crypto Custody to Operate Through ADGM
According to the announcement, the custody services will operate through Abu Dhabi Global Market, an international financial center and free zone located on Al Maryah Island.
Source: Global Markets
ADGM has become one of the UAE’s primary regulatory hubs for digital assets and blockchain-based financial infrastructure.
The collaboration combines BNY’s custody operations with Finstreet’s digital market ecosystem and ADI Foundation’s blockchain infrastructure. The firms stated that the partnership is designed to support regulated digital asset activity within Abu Dhabi’s financial sector.
Hani Kablawi, Executive Vice Chair at BNY, said the company’s existing role across traditional capital markets positions it to connect traditional finance systems with blockchain-based financial infrastructure.
The announcement also noted that BNY plans to expand beyond Bitcoin and Ethereum custody into other regulated digital products. These future services may include stablecoins, tokenized financial assets, and blockchain-based settlement systems tied to institutional finance.
UAE Expands Digital Asset Infrastructure
Abu Dhabi and Dubai have both introduced licensing frameworks for crypto firms, blockchain businesses, and tokenized financial products over the past few years.
Finstreet operates as a subsidiary of International Holding Company (IHC) through Sirius International Holding. IHC recently participated in the launch of DDSC, a dirham-backed stablecoin regulated by the Central Bank of the UAE.
According to the press release, DDSC operates on ADI Chain, a Layer-2 blockchain developed by the ADI Foundation for institutional blockchain infrastructure and regulated digital finance. The companies also confirmed that PUSD, a Shariah-compliant stablecoin backed one-to-one by Saudi riyals and UAE dirhams, is expected to launch on ADI Chain.
Ajay Bhatia, Principal Council Member at ADI Foundation, said the collaboration represents another step in Abu Dhabi’s effort to strengthen its digital asset infrastructure and regulated blockchain ecosystem. ADI Foundation has continued to expand partnerships related to tokenized assets and regulated blockchain infrastructure throughout 2025.
According to the announcement, ADI Chain secured memoranda of understanding with BlackRock, Mastercard, and Franklin Templeton earlier this year. The agreements focus on blockchain systems connected to tokenized asset settlement, regulated digital financial products, and cross-border payment infrastructure.
BNY Increases Global Services for Digital Assets
The company currently serves as a crypto and cash custodian for several cryptocurrency exchange-traded funds, including the Morgan Stanley Bitcoin ETF.
Earlier this year, the bank also introduced tokenized deposit services designed for institutional clients. The Abu Dhabi initiative adds another international market to BNY’s growing digital asset operations. At the same time, the UAE has continued to approve licenses for digital asset companies and to expand blockchain-related regulations.
Firms including Animoca Brands, BitGo, and Binance have secured approvals in the country as regulators broaden the frameworks for tokenized stocks, crypto derivatives, and digital financial infrastructure.
The BNY crypto custody partnership now places one of the world’s largest custodial banks within Abu Dhabi’s regulated digital asset market, as the UAE continues to develop blockchain-based financial systems tied to institutional digital finance.
FAQ
What services will BNY initially provide in Abu Dhabi?
BNY plans to initially offer custody services for Bitcoin and Ethereum through Abu Dhabi Global Market.
Will BNY expand into other digital assets?
Yes, the companies said their plans include stablecoins, tokenized real-world assets, and other regulated digital financial products.
Who are BNY’s partners in the initiative?
BNY is working with Finstreet Limited and ADI Foundation on the Abu Dhabi crypto custody initiative.
Is the project already operational?
The collaboration is still under regulatory approval and agreement.
