BNY Partners with Key Companies to Expand Crypto Custody in the UAE

bitcoinistPublished on 2026-05-08Last updated on 2026-05-08

Abstract

BNY, the world's largest custodian bank, has announced a strategic collaboration with Finstreet Limited and ADI Foundation to establish regulated, institutional-grade digital asset custody infrastructure in the Abu Dhabi Global Market (ADGM). This marks the first time a U.S. global systemically important bank has introduced crypto custody services to the UAE. The initiative will begin with Bitcoin and Ethereum custody, with plans to expand into stablecoins, tokenized assets, and other regulated digital instruments, subject to final agreements and regulatory approvals. BNY provides its global custody expertise, Finstreet contributes its licensed digital market ecosystem within ADGM, and ADI Foundation supplies sovereign-grade blockchain infrastructure via its ADI Chain. Choosing ADGM as the anchor jurisdiction underscores its institutional-grade regulatory framework under English common law. The move aligns with the UAE's broader efforts to build sovereign digital currency infrastructure, including a regulated dirham-backed stablecoin. BNY's entry signals that regulated digital asset infrastructure in the Gulf is now a present reality, positioning Abu Dhabi as a key hub for institutional crypto adoption and future financial innovation.

BNY, the world’s largest custodian bank overseeing $59.4 trillion in assets, has announced a strategic collaboration with Finstreet Limited and ADI Foundation to build regulated, institutional-grade digital asset custody infrastructure anchored in the Abu Dhabi Global Market (ADGM) — marking the first time a US global systemically important bank has brought crypto custody to the UAE.

The announcement, made on May 7 via BNY’s official newsroom, positions Abu Dhabi as the geographic anchor for an initiative that begins with Bitcoin and Ethereum custody before expanding into stablecoins, tokenized real-world assets, and other regulated digital instruments. All efforts remain subject to definitive agreements and relevant regulatory approvals, per the official release.

Bitcoin's price trends to the upside on the daily chart. Source: BTCUSD on Tradingview

Three Institutions, Three Distinct Roles

The architecture of the collaboration reflects three distinct layers of infrastructure, each contributed by a different partner. BNY brings its globally recognized custody backbone — the institution has offered digital asset custody to a select group of US clients since 2022, and obtained a Category 4 license in ADGM ahead of this expansion.

Finstreet Limited, a subsidiary of International Holding Company (IHC) through Sirius International Holding and based within ADGM, contributes its digital market ecosystem. Its licensed subsidiaries cover multilateral trading, custody and depository services, and investment advisory — giving the partnership a direct plug into Abu Dhabi’s institutional capital markets infrastructure.

ADI Foundation provides what it describes as sovereign-grade blockchain infrastructure through ADI Chain, a Layer 2 blockchain also founded under the IHC umbrella. Ajay Bhatia, Principal Council Member at ADI Foundation, noted in the release that ADI Chain is designed to unlock new opportunities in custody, trade finance, and lending from Abu Dhabi to the world.

Abu Dhabi’s Crypto Institutional Bet

The choice of ADGM as the anchor jurisdiction is deliberate. While Dubai’s VARA framework has attracted retail exchanges and Web3 startups, ADGM has built its reputation on institutional-grade licensing under English common law — a framework that has drawn Galaxy Digital, Circle, and Tether’s USDt to the market in recent months, per CryptoTimes.

IHC separately announced the launch of DDSC, a dirham-backed stablecoin fully regulated by the Central Bank of the UAE, which is currently in early-stage government and institutional adoption, according to the FX News Group. That context matters: BNY is entering a market that is actively building its own sovereign-grade digital currency infrastructure, not merely accommodating crypto adoption from the outside.

Hani Kablawi, Executive Vice Chair at BNY, characterized the move in the official release as a commitment to building financial infrastructure for the future — noting that the UAE is entering a new phase marked by deeper markets, greater digital sophistication, and stronger global connectivity.

This development marks a critical juncture for the nascent sector’s institutional custody landscape. As the world’s largest custodian plants its flag in Abu Dhabi, the signal to other global financial institutions considering Middle East expansion is clear: regulated digital asset infrastructure in the Gulf is no longer a future consideration — it is being built now.

Cover image from Grok, BTCUSD chart from Tradingview

Related Questions

QWhat is the significance of BNY's collaboration in Abu Dhabi for the crypto custody sector?

AIt marks the first time a US global systemically important bank has brought crypto custody to the UAE, signaling a major institutional commitment and building regulated digital asset infrastructure in the region now, not in the future.

QWhich three companies are partnering with BNY, and what unique role does each play?

ABNY provides its global custody backbone and ADGM license; Finstreet Limited contributes its licensed digital market ecosystem (trading, custody, advisory) within ADGM; and ADI Foundation supplies sovereign-grade blockchain infrastructure through its ADI Chain.

QWhy was Abu Dhabi Global Market (ADGM) chosen as the anchor jurisdiction for this initiative?

AADGM has built a reputation for institutional-grade licensing under English common law, attracting firms like Galaxy Digital and Circle, unlike Dubai's VARA which focuses more on retail and Web3 startups.

QWhat digital assets will the custody service initially support, and what is the planned expansion?

AThe service will begin with Bitcoin and Ethereum custody, with plans to expand into stablecoins, tokenized real-world assets, and other regulated digital instruments.

QHow does the recent launch of a dirham-backed stablecoin (DDSC) relate to BNY's market entry?

AIt shows BNY is entering a market that is actively building its own sovereign-grade digital currency infrastructure, not just accommodating external crypto adoption, indicating deeper local market development.

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