Galaxy and BNY have expanded their digital asset partnership, integrating institutional staking into BNY’s Digital Asset Custody platform. The collaboration combines custody and staking within a single servicing model, letting clients earn yield on held assets without moving them to a separate provider.
What the deal includes
Under the expanded arrangement, BNY’s custody clients can stake supported proof-of-stake assets directly through Galaxy’s staking infrastructure. The two firms say the integrated model reduces operational complexity and counterparty risk. BNY is also advancing tokenized fund infrastructure and blockchain-based transfer agency services, though those efforts are separate from the staking integration.
Institutional demand for staking yield has grown alongside the rise of proof-of-stake networks. But large asset managers and funds have been cautious about moving assets off custody to third-party staking providers. By embedding staking into the custody platform, BNY and Galaxy aim to offer a compliance-friendly path. The bank’s regulated status and Galaxy’s staking technology create a structure that meets both security and yield requirements.
What BNY is building next
Beyond custody and staking, BNY is working on tokenized fund infrastructure and blockchain-based transfer agency services. That suggests the bank sees a future where fund shares are issued and managed on-chain, not just held in custody. The transfer agency piece would let BNY handle shareholder records and distributions on a blockchain, a shift from traditional back-office systems.
The competitive landscape
Other large custodians — State Street, Citi, JPMorgan — have explored digital asset custody, but few have integrated staking directly into their platform. Galaxy provides the staking technology and validator operations, while BNY provides the regulated custody wrapper. The partnership is already live for select clients, with broader rollout expected later this year.
