New York Bank Expands Digital Asset Custody Services to the United Arab Emirates

On May 7th, the world’s largest custodian bank managing $59 trillion in assets—Bank of New York Mellon (BNY)—is expanding its digital asset custody business to the United Arab Emirates through local partners. According to a press release issued on Thursday, this global financial services giant is collaborating with Finstreet and ADI Foundation to build a regulated digital asset infrastructure within the region centered around Abu Dhabi Global Market (ADGM). ADGM is Abu Dhabi’s financial free zone and has become a hub for crypto companies and blockchain projects entering the Middle East. The press release states that the initial phase of the plan will focus on custody services for cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), with future plans to expand to stablecoins and tokenized assets. Hani Kablawi, Vice Chairman of BNY Mellon, said in a statement: “The UAE is entering a new phase of financial development characterized by deeper markets, more mature digital technologies, and stronger global connectivity. With our world-class capabilities and scale in capital markets, BNY Mellon has a unique advantage to work with clients, connecting traditional and digital financial ecosystems.” This move by BNY Mellon reflects a common trend among large financial institutions to bring blockchain technology into broader mainstream markets beyond crypto trading. Tokenization—the process of digitally representing assets such as bonds, funds, and stocks on blockchain networks—is increasingly gaining attention as institutions seek faster settlement, more efficient collateral management, and lower operational costs.