BNY Enters UAE Market with Institutional Crypto Custody Offering

Highlights:

• BNY has expanded into Abu Dhabi with crypto custody services for Bitcoin and Ethereum.
• Abu Dhabi is strengthening its digital asset market with clear rules and new approvals.
• The partnership aims to expand support for stablecoins and tokenized assets in Abu Dhabi.

BNY, a global financial services company, partnered with Finstreet and ADI Foundation on Thursday to expand crypto custody in Abu Dhabi. The partners will build a regulated digital asset infrastructure inside Abu Dhabi Global Market ADGM for institutional clients.

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The project will start in the UAE by offering crypto custody services for Bitcoin and Ethereum to institutional clients such as banks and asset managers. These custody services will allow UAE-based funds and banks to store Bitcoin and Ethereum under regulated conditions within ADGM.

BNY launched digital asset custody earlier as the first major US global systemically important bank to offer such services. The bank will use that experience to expand into the Middle East through its Abu Dhabi partnership.

Finstreet, which operates under International Holding Company through Sirius International Holding, will provide digital market infrastructure for the crypto custody project in Abu Dhabi. ADI Foundation, which is based in Abu Dhabi, will provide blockchain infrastructure using its ADI Chain network for institutional use. ADI Chain acts as a Layer 2 network that supports stablecoins and tokenized real-world assets in the MENA region.

Hani Kablawi, executive vice chair at BNY, said:

“The UAE is entering a new phase of financial development with deeper markets and stronger digital systems. We will connect traditional finance with digital networks through our global capabilities. We are building infrastructure that supports institutional clients in the region.”

Crypto Custody Drives Shift to Tokenized Finance

The partnership plans to expand its Abu Dhabi services beyond Bitcoin and Ethereum custody after the initial rollout. The firms will introduce support for stablecoins and tokenized real-world assets within the same regulated framework. These assets may include tokenized bonds, funds, and other financial instruments issued on blockchain networks.

The partners will also support financial activities such as trade finance, lending, and settlement using blockchain-based systems in the UAE. These blockchain services provide faster transaction processing and lower operational costs than traditional financial systems.

Tokenization allows financial assets to move across blockchain networks with improved efficiency and transparency. This process helps financial institutions settle transactions faster and manage collateral more effectively across digital systems. It also reduces delays that occur in traditional settlement systems used by global markets.

However, the crypto custody project depends on regulatory approvals and final agreements between BNY, Finstreet, and ADI Foundation before full rollout. Each phase will follow FSRA rules within ADGM and UAE financial regulations.

Abu Dhabi Builds Regulated Digital Asset Hub

Abu Dhabi has been expanding its regulated digital asset ecosystem through Abu Dhabi Global Market. The Financial Services Regulatory Authority supervises licensing and compliance for firms operating in this jurisdiction. This framework allows crypto firms and financial institutions to build services, such as crypto custody, under clear regulatory rules in ADGM.

ADGM approved Tether’s USDT as an accepted virtual asset for regulated use by licensed firms. This approval allows FSRA-licensed companies to offer payment and settlement services using USDT within the region. In March, Ondo Finance received approval to trade tokenized US stocks and ETFs inside ADGM.

International Holding Company and other institutions recently introduced a dirham-backed stablecoin called DDSC for institutional and government use. The Central Bank of the UAE regulates DDSC to support payment efficiency across public and financial sectors.

Dubai is entering a new phase of digital finance, as banks and financial institutions move from blockchain experimentation to real-world deployment.

With the approval of the AED-backed DDSC stablecoin and growing institutional integration of tokenised financial services, Dubai… pic.twitter.com/05XjbBs0nZ

— Virtual Assets Regulatory Authority (VARA) (@varadubai) April 6, 2026

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