BNY Mellon Adds Crypto Staking via Galaxy Digital Deal

BNY, the world's largest custody bank, is bringing crypto staking into its digital asset custody platform through a partnership with Galaxy Digital. The two firms announced the collaboration on Aug. 4, 2026.

Staking lets holders of certain cryptocurrencies lock up coins to help validate and secure a blockchain network, earning rewards in return. Until this deal, institutions that wanted both custody and staking income often had to split assets across multiple providers, creating extra operational work and compliance costs.

BNY plans to integrate staking directly into its Digital Asset Custody platform. Eligible institutional clients will be able to earn staking rewards while keeping assets under the same custody, fund accounting, tax reporting and client reporting systems used for traditional holdings. The service still needs regulatory approval before it becomes available.

Galaxy Digital supplies the infrastructure that keeps validators online and producing rewards. The firm operates proof-of-stake validators across networks including Ethereum and Solana, and reported managing about $3.2 billion in staked assets as of March 31, 2026. Galaxy is also serving as a design partner for BNY's broader digital asset platform, not just a staking provider.

Carolyn Weinberg, Chief Product and Innovation Officer at BNY, said the move responds to client demand. “As digital assets continue to evolve, clients want more than safekeeping alone, they want a broader set of capabilities delivered through an institutional-grade model,” she said. “Our work with Galaxy, an early client of BNY’s Digital Asset Custody platform, reflects our strategy of building the financial infrastructure of the future while continuing to expand our digital asset capabilities.”

Steve Kurz, Global Co-Head of Digital Assets at Galaxy, said the partnership fits a larger shift. “The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows,” he said. “Galaxy has spent years building the institutional-grade infrastructure to drive that shift, including staking. Our collaboration with BNY brings that work into a framework the world’s largest institutions can trust.”

The deal extends BNY's steady push into digital assets. As of June 30, 2026, the bank held $62.6 trillion in assets under custody or administration. It already custodies bitcoin (BTC) and ethereum (ETH), supports most U.S. spot bitcoin and ether ETFs, launched tokenized deposit services in January 2026, and added USDC custody support in June 2026.

For pension funds, asset managers and insurers, the main hurdle has been moving assets outside long-established custody frameworks just to collect validator rewards. Keeping custody, reporting and staking under one roof removes that obstacle.

Risks remain. Staking exposes participants to validator failures, including slashing penalties if infrastructure goes offline or violates network rules. Assets can also stay locked for periods, and tax treatment of staking rewards varies across jurisdictions.

The next milestone is regulatory approval, followed by details on which cryptocurrencies qualify and which clients get access first. For a broader look at institutional crypto trends, see our crypto market analysis.