BNY to add crypto staking to digital asset custody platform
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
BNY Mellon announced plans to add crypto staking to its digital asset custody platform through a partnership with Galaxy. This service will enable institutional clients to earn staking rewards on assets held in custody without transferring them elsewhere. Galaxy will provide the staking infrastructure and collaborate with BNY as they expand blockchain-based services.
Why it matters
Offering staking directly on a custody platform simplifies access for institutional investors by removing the need to move tokens to separate providers. This integration represents a continued expansion of blockchain services for large financial institutions managing significant assets, which could influence broader adoption and infrastructure development in the crypto space.
Key context
Staking involves locking up crypto tokens to help secure blockchains in exchange for rewards. BNY Mellon launched crypto custody services in 2022 and has been extending its blockchain offerings, including shifting record-keeping to blockchain and planning tokenized U.S. Treasury settlements. Their custody business manages tens of trillions of dollars, making these developments notable in institutional finance.
Key numbers and entities
The key organizations are BNY Mellon and Galaxy (ticker GLXY). BNY Mellon oversees tens of trillions of dollars in assets under custody and administration. No specific figures about staking amounts or timelines for service launch were provided beyond mentions of regulatory approval.
What remains unclear
The announcement notes the staking offering is pending regulatory approval but provides no specific timeline or details on the jurisdictions involved. The source does not specify which crypto assets will be supported for staking or the exact rollout schedule for the new service.