BNY, the world's largest custodian bank overseeing $59.4 trillion in assets, is planting a flag in the Middle East. The bank announced May 7 a strategic collaboration with Finstreet Limited and ADI Foundation to build regulated, institutional-grade digital asset custody infrastructure in the Abu Dhabi Global Market (ADGM). It's the first time a US global systemically important bank has brought crypto custody to the UAE.
Inside the deal
The initiative kicks off with Bitcoin and Ethereum custody, then expands into stablecoins, tokenized real-world assets, and other regulated digital instruments — all subject to definitive agreements and regulatory approvals. BNY already secured a Category 4 license in ADGM ahead of the move.
Finstreet Limited is a subsidiary of International Holding Company (IHC) via Sirius International Holding, based inside ADGM. Its licensed subsidiaries cover multilateral trading, custody and depository services, and investment advisory. ADI Foundation brings sovereign-grade blockchain infrastructure through ADI Chain, a Layer 2 blockchain founded under the IHC umbrella.
Why Abu Dhabi
ADGM has built a reputation for institutional-grade licensing under English common law. That's lured Galaxy Digital, Circle, and Tether's USDt in recent months. Separately, IHC announced the launch of DDSC, a dirham-backed stablecoin fully regulated by the Central Bank of the UAE, now in early-stage government and institutional adoption. The timing positions ADGM as a serious hub for regulated digital assets.
What BNY said
“This is about building financial infrastructure for the future,” said Hani Kablawi, Executive Vice Chair at BNY. “The UAE is entering a new phase of deeper markets and digital sophistication.” He didn't offer a timeline, but the emphasis is on institutional readiness, not speed.
All efforts remain contingent on final agreements and regulatory green lights. If approved, BNY's move could pressure other global banks to follow — or at least test the waters in Abu Dhabi. The real open question: how soon will the DDSC stablecoin link up with BNY's custody rails, and whether US regulators will have anything to say about a US bank holding UAE-based digital assets.
