BNY Mellon and Galaxy Digital announced an integrated custody platform that offers institutional investors access to cryptocurrency staking services. The partnership combines BNY's existing digital asset custody infrastructure with Galaxy's staking operations.
Staking allows cryptocurrency holders to earn returns by locking assets to secure blockchain networks. BNY Mellon has positioned digital asset services as a core business line since acquiring Pershing's crypto custody technology in 2021, competing directly with established players like Coinbase Institutional and Fidelity Digital Assets.
Galaxy Digital, the publicly traded merchant bank founded by Mike Novogratz, has operated its own staking business across multiple blockchain networks. The partnership integrates Galaxy's staking operations into BNY's custody platform rather than creating a separate service line. Institutional clients using BNY's custody can now access staking through the same interface where they hold assets, eliminating the need for separate accounts or counterparties.
Goldman Sachs resumed digital asset trading in 2023 after a three-year pause, while JPMorgan has built out a dedicated digital assets business unit. BNY Mellon, managing roughly 47 trillion dollars in assets under administration globally, had previously launched a digital asset custody platform in 2020.
Staking has grown as an institutional revenue stream as proof-of-stake networks including Ethereum, Solana, and Polkadot mature. Validators on these networks earn transaction fees and inflation-based rewards for participating in network consensus. Institutional staking service providers typically charge basis points on staked assets or take a percentage of yields earned.
The companies disclosed no client list, minimum stake amounts, yield splits, or asset-under-administration figures for the partnership. BNY Mellon and Galaxy Digital have not announced public launch dates, fee structures, or which blockchain networks would be supported through the integrated platform. If either firm has not published operational details and a live platform within the next 90 days, the announcement will have been more promise than delivery.
