Briefing
- BNY, the world's largest custodian bank with $59.4 trillion in assets under custody or administration, is partnering with Finstreet and ADI Foundation to provide institutional crypto custody from the Abu Dhabi Global Market.
- Services will initially cover bitcoin and ether custody for Finstreet's existing clients, with a subsequent extension to ADI Foundation's blockchain infrastructure planned but not yet scheduled.
- The three parties intend to expand to stablecoins, tokenized real-world assets and other regulated digital instruments; the initiative remains subject to definitive agreements and regulatory approvals.
- Finstreet is a subsidiary of Sirius International Holding, backed by UAE conglomerate IHC, which recently co-launched DDSC, a dirham-backed stablecoin regulated by the UAE central bank and running on ADI Chain.
- ADI Chain signed MOUs with BlackRock, Mastercard and Franklin Templeton in 2025 covering tokenized asset settlement, giving BNY a foothold in an infrastructure layer already connected to major asset managers.
- BNY claims to be the first US global systemically important bank to offer digital asset custody, a designation that could inform how rival custodians respond to the Abu Dhabi expansion.
Analysis
- ADI Chain's existing MOUs with BlackRock, Mastercard, and Franklin Templeton mean BNY is not entering a greenfield jurisdiction but an infrastructure layer already committed to by major asset managers. If ADI Chain becomes the settlement rail for tokenized real-world assets in ADGM, BNY's custodian position there becomes structurally embedded before rivals can respond. The G-SIB first-mover designation creates a reputational barrier that forces State Street and JPMorgan to either match in ADGM or cede the institutional RWA custody segment in the Gulf.
- The IHC-backed Finstreet connection links BNY into the DDSC dirham stablecoin ecosystem running on ADI Chain. If stablecoin custody is added as planned, BNY would hold reserves or settlement assets for a central-bank-regulated dirham stablecoin, giving it a compliance template for sovereign-backed stablecoin custody at the moment US stablecoin legislation under the GENIUS Act is still being finalized. This positions BNY as the preferred custodian for non-USD regulated stablecoins seeking US G-SIB credibility.
Historical Context
- Oct 2023
BNY received OCC conditional approval to offer bitcoin and ether custody for US clients, becoming the first G-SIB to do so. That domestic approval provided the regulatory credibility BNY is now leveraging to expand into ADGM, where institutional demand for a US custodian anchor is high.
- 2021-2022
Abu Dhabi Global Market aggressively recruited crypto and fintech firms after Singapore tightened licensing, establishing ADGM as the dominant Gulf digital asset jurisdiction. Infrastructure built in that period, including ADI Chain, is now the layer BNY is connecting to.
Connected Events
Morgan Stanley pilots crypto trading on E*Trade at 50bp fee
Morgan Stanley's E*Trade crypto trading pilot and BNY's ADGM custody launch represent the same structural move by different incumbents: large US financial institutions are occupying institutional and retail crypto infrastructure before pure-play platforms can entrench. Both moves compress the addressable market for Coinbase's custody and trading businesses.
Western Union launches USDPT dollar stablecoin on Solana for global remittance network
Western Union's USDPT stablecoin launch on Solana via Anchorage Digital and BNY's ADGM stablecoin custody ambitions both depend on the GENIUS Act regulatory framework providing a compliant foundation for US-linked institutions to operate cross-border stablecoin infrastructure.
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