BNY is preparing to expand deeper into digital assets through Abu Dhabi, with plans to offer cryptocurrency custody services focused first on Bitcoin and Ethereum. The global financial services firm is working with Finstreet and ADI Foundation to build a regulated digital asset infrastructure in Abu Dhabi Global Market, according to a Thursday press release.
The initiative places one of the world’s largest custodian banks closer to the Gulf region’s growing digital finance market. It also connects traditional capital markets with regulated blockchain infrastructure in the UAE.
BNY plans to begin with custody services for Bitcoin and Ether. Later, the project may expand into stablecoins and tokenized assets.
The partnership will operate from Abu Dhabi Global Market, a financial free zone that has attracted crypto firms and blockchain projects entering the Middle East. BNY said the initiative will support regulated digital asset infrastructure. The first phase will focus on custody for major cryptocurrencies, including Bitcoin and Ethereum.
The move comes as major financial institutions explore blockchain use beyond crypto trading. Tokenization has gained attention since it can represent bonds, funds, equities, and other assets on blockchain networks.
That approach can support faster settlement, smoother collateral management, and lower operating costs. As a result, banks and market infrastructure firms are studying how blockchain can fit into regulated finance.
BNY’s entry also points to the UAE’s wider push into digital finance. Abu Dhabi and Dubai have spent recent years building frameworks for crypto firms, tokenization projects, and blockchain companies.
These rules have helped attract exchanges, stablecoin issuers, and institutional digital asset firms. At the same time, local authorities continue to link digital asset growth with oversight.
The UAE has also advanced state-backed digital finance plans. IHC and other local institutions recently unveiled plans for a regulated dirham-backed stablecoin aimed at government and institutional use.
BNY’s scale gives the project added importance. The firm oversees about $59 trillion in assets under custody and administration, making it the world’s largest custodian bank. The bank also became the first major U.S. global systemically important bank to launch digital asset custody services. Its Abu Dhabi expansion now extends that activity into a fast-growing regional market.
Hani Kablawi, executive vice chair at BNY, said the UAE is entering a new phase of financial development. He pointed to deeper markets, stronger digital sophistication, and wider global connectivity. “With our world-class capabilities and scale across capital markets, BNY is uniquely positioned to connect traditional and digital financial ecosystems in collaboration with our clients,” Kablawi said.
For crypto markets, the project adds another institutional custody signal. Large financial firms rely on custody infrastructure to serve clients who need regulated access to digital assets. The initial focus on Bitcoin and Ethereum reflects their central role in institutional crypto exposure. The report also noted that Bitcoin traded near $80,900 at the time of writing.
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Beyond custody, BNY’s plans could later touch stablecoins and tokenized assets. That would link the project to areas such as tokenized real-world assets, institutional DeFi rails, cross-border settlement systems, and regulated stablecoin ecosystems.
BNY’s Abu Dhabi move also connects to a larger shift in finance. More banks, governments, and financial firms now treat blockchain as infrastructure for regulated markets, not only as a trading sector.
BNY’s Abu Dhabi expansion shows how major financial institutions are moving deeper into regulated digital assets. The initiative will begin with Bitcoin and Ethereum custody before expanding toward stablecoins and tokenized assets. The development also strengthens the UAE’s role in institutional crypto infrastructure.