Both companies announced their collaboration on August 4, 2026. Staking allows holders of certain cryptocurrencies to lock up their coins to participate in validating and securing a blockchain network in exchange for rewards. Until now, institutions seeking both institutional-grade asset custody and staking yield have generally been forced to split assets across multiple providers, creating additional operational and regulatory complexities.
BNY plans to integrate staking directly into its digital asset custody platform. This means eligible institutional clients will be able to earn staking rewards while keeping assets within the same custody, fund accounting, tax reporting, and client reporting systems already used for traditional assets. This offering must receive regulatory approval before becoming available.
Galaxy Provides the Infrastructure
Galaxy Digital provides the infrastructure that physically ensures validators' continuous connection to networks and reward collection. The company manages proof-of-stake (PoS) validators across various networks, including Ethereum and Solana, and, as of March 31, 2026, reported managing approximately $3.2 billion in staked assets. Galaxy also acts as a development partner for BNY's broader digital asset platform, not merely another staking service provider.
Caroline Weinberg, Head of Product and Innovation at BNY, explained the rationale behind the move. "As digital assets continue to evolve, clients are looking for not just custody, but a broader range of capabilities offered within an institutional-grade model," she explained.
The BNY executive added:
"Our collaboration with Galaxy, one of the first clients on BNY's digital asset custody platform, reflects our strategy of building the financial infrastructure of the future while expanding our digital assets capabilities. With the addition of staking, we will provide clients with a more comprehensive digital asset custody solution based on the governance, control, and resilience they expect from BNY."
Steve Kurz, Global Co-Head of Digital Assets at Galaxy, characterized the deal as part of a broader shift in finance. "The future of financial markets will be built on open, programmable rails, and the institutions that take the first step will define the next era," he noted. "Galaxy has spent years building the institutional-grade infrastructure necessary for this transformation, including staking. Our collaboration with BNY brings this work into a framework that the world's largest institutions can trust. As the infrastructure development partner for the BNY platform, we're helping shape the foundation upon which these services will operate."
Wall Street Removes Another Barrier
This move continues BNY's steady expansion into digital assets. As of June 30, 2026, the bank had $62.6 trillion in assets under custody or administration. It already provides custody for Bitcoin (BTC) and Ether (ETH), supports most U.S. spot Bitcoin and Ether exchange-traded funds (ETFs), launched tokenized deposit services in January 2026, and added USDC custody support in June 2026.
For pension funds, asset managers, and insurers, the appeal of this service is practical rather than speculative. Institutional investors rarely object to staking itself. The greater obstacle has been moving assets out of long-established custody systems just to earn validator rewards. Consolidating custody, reporting, and crypto staking under one roof removes one of the biggest operational hurdles that has held back institutional investor participation.
Regulators Hold the Decisive Key
Risks have not disappeared. Staking still exposes participants to validator failure risks, including slashing penalties if infrastructure goes offline or violates network rules. Assets may also remain locked for specific periods, while the tax treatment of staking rewards continues to evolve across various jurisdictions.
The next catalyst will be regulatory approval, followed by details on which cryptocurrencies qualify and which institutional clients get first access once the staking service officially launches.
