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BNY to add crypto staking to digital asset custody platform
The staking service would let institutional clients earn rewards on assets held in BNY custody, without moving tokens elsewhere, pending regulatory approval.
CoinDesk reports that BNY, formerly Bank of New York Mellon, plans to add staking to its digital asset custody platform via a partnership with crypto financial services firm Galaxy.
BNY said the new service would allow institutional clients to stake digital assets held in its custody to earn staking rewards, with Galaxy providing the staking infrastructure and serving as a design partner as BNY expands its blockchain-based services.
BNY noted that staking works by locking up certain crypto tokens to help secure blockchain networks in exchange for rewards, and that offering staking through the same custody platform removes the need for large investors to transfer tokens to a separate provider.
The bank also highlighted its broader push in digital assets since launching crypto custody services in 2022, including plans related to blockchain-based record-keeping and around-the-clock settlement for traditional and tokenized U.S. Treasuries in 2027, with testing of tokenized Treasuries on a private blockchain before the end of this year.