BNY Expands Crypto Custody Push to Abu Dhabi as UAE’s Digital Asset Race Heats Up

BNY, the world’s largest custodian bank with nearly $59 trillion in assets under custody and administration, is making a bigger move into crypto. The Wall Street giant is expanding its digital asset custody business into Abu Dhabi through partnerships with Finstreet and ADI Foundation. 

As per the report, the new initiative will operate inside Abu Dhabi Global Market (ADGM), one of the Middle East’s fastest-growing crypto and blockchain hubs. Initially, the focus will be on custody services for Bitcoin and Ethereum, but the plan is to later expand into stablecoins and tokenized assets.

BNY Is Going Bigger on Crypto

This is another sign that traditional finance is moving deeper into blockchain infrastructure. BNY was already the first major U.S. global systemically important bank to launch digital asset custody services, and now it’s taking that business into one of the world’s most crypto-friendly regions.

Hani Kablawi, Executive Vice Chair at BNY, said the UAE is entering a “new phase of financial development” driven by stronger digital connectivity and deeper capital markets. According to him, BNY wants to help connect traditional finance with digital assets through regulated infrastructure.

Why Abu Dhabi? The ADGM Advantage

A big reason behind the move is regulation. Unlike many regions still figuring out crypto laws, ADGM has spent years building a clear framework for digital assets through its Financial Services Regulatory Authority (FSRA).

For a 240-year-old bank like BNY, legal clarity matters. It gives institutions confidence to safely manage crypto assets with the same standards used for traditional financial products.

The Bigger Play: Tokenization

This expansion is not just about storing Bitcoin and Ethereum. The real opportunity is tokenization, putting real-world assets like real estate, bonds, and private equity on blockchain networks.

By working with ADI Chain infrastructure, BNY is positioning itself for a future where trading, settlement, and custody all happen on-chain in one regulated ecosystem.

What This Means for Crypto

BNY’s arrival in the UAE signals a “domino effect” for other global banks. As one of the biggest names in traditional finance, its move adds major credibility to Abu Dhabi’s ambition of becoming a global hub for regulated digital finance.

The UAE is no longer just attracting crypto startups; it’s now becoming a serious destination for trillion-dollar institutional players.