BNY Mellon Plans Bitcoin and Ethereum Custody Services for UAE Institutional Market
Through a collaboration with Finstreet and ADI Foundation, BNY will provide regulated custody solutions for Bitcoin and Ethereum to institutional clients operating from Abu Dhabi Global Market in the UAE.
In a strategic collaboration, BNY has joined forces with two Abu Dhabi-headquartered entities, Finstreet and ADI Foundation, to establish institutional-grade digital asset custody solutions targeting clients across the United Arab Emirates.
The partnership will initially concentrate on providing Bitcoin and Ether custody capabilities to Finstreet's current client base, with subsequent plans to integrate ADI Foundation's blockchain infrastructure, according to a Thursday statement from the world's largest custodian. According to the companies, future expansion of the product offering will encompass stablecoins, tokenized real-world assets and additional regulated digital instruments, although a specific timeline was not disclosed.
"BNY is uniquely positioned to connect traditional and digital financial ecosystems," Hani Kablawi, executive vice chair at BNY, said. BNY claimed it is the first US global systemically important bank to offer digital asset custody.
Operating from the Abu Dhabi Global Market (ADGM), an international financial center and free zone situated on Al Maryah Island, the three organizations will deliver digital asset custody services. According to BNY, the initiative is still contingent upon finalization of definitive agreements and obtaining necessary regulatory approvals.
UAE stablecoin infrastructure expands
As a subsidiary of Sirius International Holding, which receives backing from UAE conglomerate IHC, Finstreet operates within a well-established corporate structure. IHC has recently collaborated with other institutional players to introduce DDSC, a stablecoin backed by the dirham and regulated by the UAE central bank. This stablecoin functions on ADI Chain, an institutional layer-2 blockchain built by ADI Foundation.
Additionally, PUSD, a Shariah-compliant stablecoin with reserves denominated in Saudi riyals and UAE dirhams, is anticipated to launch on ADI Chain.
Throughout 2025, ADI Chain has executed memoranda of understanding with BlackRock, Mastercard and Franklin Templeton related to tokenized asset settlement and digital financial infrastructure.
Over recent years, the UAE has maintained its commitment to advancing its digital asset regulatory framework and tokenization infrastructure, granting licenses to companies such as Animoca Brands, BitGo and Binance while establishing rules governing tokenized stocks, ETFs and crypto derivatives.
Cointelegraph reached out to BNY for a comment, but had not received a response by publication.
UAE stablecoins launch regulated conversion rail
This BNY partnership emerges at a time when Abu Dhabi-based companies are advancing further into regulated digital asset infrastructure development.
Through a Thursday announcement, AE Coin and USD Universal revealed they are constructing a regulated conversion rail enabling near-instant exchange between the UAE dirham-pegged AE Coin and the US dollar-backed USDU stablecoin, with a focus on institutional payments and treasury management applications.
Operating on Al Maryah Community Bank's infrastructure, the system will be made available initially through Aquanow and Changer.ae, two regulated digital asset service providers in the UAE.