BNY, the world’s largest custodian 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 services giant is working with Finstreet and the ADI Foundation to build a regulated digital asset infrastructure anchored in the Abu Dhabi Global Market (ADGM), the free financial zone in Abu Dhabi that has become a hub for crypto companies and blockchain projects entering the Middle East region.
The initiative will initially focus on cryptocurrency custody services, including bitcoin. and ether (ETH), with plans to later expand into stablecoins and tokenized assets, according to the press release.
“The UAE is entering a new phase of financial development, characterized by deeper markets, greater digital sophistication and stronger global connectivity,” Hani Kablawi, executive vice president of BNY, said in a statement. “With our world-class capabilities and scale in the capital markets, BNY is uniquely positioned to connect traditional and digital financial ecosystems in collaboration with our clients.”
BNY’s move reflects a broader push by major financial institutions to bring blockchain technology to mainstream markets beyond cryptocurrency trading. Tokenization – the process of representing assets such as bonds, funds and stocks on blockchain networks – is gaining ground as companies seek faster settlements, more efficient collateral management and lower operating costs.
The bank’s entry into the UAE also highlights how quickly the Gulf region is emerging as a hub for digital asset financing. Abu Dhabi and Dubai have attracted cryptocurrency exchanges, stablecoin issuers and tokenization startups with regulatory frameworks designed to support digital assets while maintaining institutional oversight.
BNY’s involvement carries additional weight due to the bank’s scale and role in traditional finance. The company oversees around $59 trillion in assets under custody and administration, making it the largest custodian bank in the world, and was the first major US global systemically important bank to launch digital asset custody services.
The UAE has also delved into state-backed digital financing initiatives. IHC and other local institutions recently revealed plans last month for a regulated dirham-backed stablecoin intended for government and institutional use.
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