BNY partners with Galaxy to bring staking into its custody platform

BNY has announced plans to add staking capabilities to its digital asset custody platform through a new partnership with Galaxy, which will supply the underlying staking infrastructure and also serve as a design partner on the expansion. Institutional clients will be able to stake assets held within BNY’s custody without transferring tokens to a separate provider, pending regulatory approval.

The arrangement matters because it keeps staked assets on-platform at a custodian that oversees tens of trillions of dollars in assets under custody and administration. For large allocators, counterparty exposure to a third-party staking operator has historically been a friction point; BNY’s integration of the service within its existing custody perimeter removes that operational step and the associated transfer risk.

This partnership sits inside a broader infrastructure build-out at BNY. The bank launched crypto custody in 2022 and has since announced a shift of core transfer agency record-keeping onto blockchain technology, creating a single on-chain ownership ledger designed to reduce intermediary reliance. It has also signalled around-the-clock settlement for traditional and tokenised U.S. Treasuries in 2027, with testing of tokenised Treasuries on a private blockchain expected before the end of this year. The staking addition suggests BNY is systematically filling out a full-stack digital asset service offering rather than treating any single capability as a standalone feature.