BNY Wants Institutions to Stake Crypto Without Ever Leaving Its Custody

BNY partners with Galaxy to add crypto staking

On 4 August 2026, BNY announced a strategic collaboration with Galaxy to bring staking to its Digital Asset Custody platform. The custody bank, formerly known as Bank of New York Mellon, said the plan would combine custody and staking within a single institutional servicing model. Galaxy, listed on the Nasdaq as GLXY, will provide the staking infrastructure. The firm works across digital assets and data center infrastructure. BNY said the combination aims to give clients an integrated, institutional-grade experience for taking part in staking through a secure, streamlined workflow.

Clients could stake without leaving BNY custody

Staking lets holders of certain crypto assets earn rewards by locking tokens to help secure a blockchain network. Under the plan, eligible institutional clients could earn those rewards without moving assets outside BNY's custody. BNY said the staking service and related infrastructure enhancements remain subject to regulatory review. The bank framed the model around the governance, controls and asset protections that institutions expect. Galaxy, described in the announcement as an early client of BNY's custody platform, brings expertise in proof-of-stake networks to the effort.

"As digital assets continue to evolve, clients want more than safekeeping alone — they want a broader set of capabilities delivered through an institutional-grade model", 4 August 2026. — Carolyn Weinberg, Chief Product and Innovation Officer, BNY

Galaxy serves as a design partner for BNY

Beyond staking, Galaxy is serving as a design partner to further develop BNY's digital asset platform infrastructure. Eligible clients could access staking alongside custody, fund accounting, tax reporting, payments and client reporting, where applicable. BNY said the approach aims to give institutions a more efficient way to join digital asset markets while keeping its custody safeguards in place. The bank said staking would sit within its broader servicing model rather than stand alone as a separate product.

"The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows", 4 August 2026. — Steve Kurz, Global Co-Head of Digital Assets, Galaxy

Ethereum leads the proof-of-stake market

Proof-of-stake networks let holders lock tokens to earn rewards, the mechanism BNY plans to support. Ethereum, the largest such network, traded at $1,868 at the time of publication, down 0.3% over the past 24 hours versus the previous close (CoinPaprika, 5 August 2026). The token had fallen about 1.3% over the past week (CoinPaprika, 5 August 2026). Its market value stood near $225 billion, ranking it second among all crypto assets. Ethereum uses proof-of-stake to secure its network after moving away from mining in 2022.

BNY expands its digital asset business

BNY has expanded its digital asset business since it launched crypto custody services in 2022. The bank oversees tens of trillions of dollars in assets under custody and administration. That scale makes its moves into blockchain infrastructure closely watched across the financial industry. The collaboration adds to a series of blockchain initiatives the bank has aimed at institutional investors.

Primary source: Source ↗