BNY Mellon is rolling out crypto staking for clients using its digital asset custody platform. The bank has selected Galaxy to provide the staking infrastructure, according to a statement. The service lets institutional investors earn rewards on proof-of-stake tokens without moving assets off the custodian's books.
Why staking now
Institutional demand for yield on crypto holdings has been climbing. BNY Mellon's move puts it in a position to offer a service that many of its clients have been asking for — the ability to stake assets while keeping them under the bank's custody umbrella. The timing aligns with a broader push by traditional finance firms to offer more than just cold storage for digital assets.
Galaxy's role in the deal
Galaxy will handle the technical side of staking operations. That means running validator nodes, managing delegation, and distributing rewards. BNY Mellon retains control of the assets themselves. The arrangement lets the bank offer staking without building the infrastructure from scratch. For Galaxy, it's a chance to plug into one of the largest custodian banks in the world.
Keeping assets on the books
A key selling point: clients don't have to transfer tokens to a third party to stake. That reduces counterparty risk and keeps the assets within BNY Mellon's custody framework. For institutions that are skittish about moving crypto off a regulated custodian, that's a big deal. The service is expected to launch later this quarter, with support for Ethereum and other proof-of-stake networks.
BNY Mellon isn't the first bank to offer staking, but its size gives the move weight. The bank oversees trillions in assets. If even a fraction of its clients opt in, it could meaningfully increase the amount of staked ETH and other tokens held by regulated entities. That's a signal that the line between traditional finance and crypto-native services continues to blur.
