BNY Mellon, the world's largest custodian bank, plans to add cryptocurrency staking services to its digital asset custody platform through a partnership with Galaxy, contingent on regulatory approval.
The move expands the scope of services available through BNY Mellon's custody offering, which already holds digital assets for institutional clients. Staking, the practice of locking cryptocurrencies into blockchain networks to earn yield, has drawn institutional interest as a revenue source, though custody banks have moved cautiously into the space due to regulatory uncertainty around whether staking constitutes a security or other regulated activity.
Galaxy, a digital asset infrastructure firm, will provide the staking technology and operational support for the service. BNY Mellon did not name a launch date in the announcement, citing the need for regulatory approval. The bank serves trillions of dollars in assets globally and has positioned itself as a bridge between traditional finance and crypto infrastructure since launching its digital custody platform in 2021.
Staking has grown into a material revenue stream for crypto platforms and custodians. Ethereum staking alone locks more than 32 million tokens worth roughly $79 billion as of August 2026, with validators earning annual yields typically between 3% and 4%. Large institutional custodians have hesitated to offer staking directly, instead routing clients through third-party staking providers to limit liability exposure.
BNY Mellon's entry into the market via Galaxy follows moves by competitors to capture institutional staking demand. Fidelity Digital Assets began offering Bitcoin staking through its custody service in 2025. Coinbase Custody has similarly partnered with protocol-level staking operators. The regulatory path remains uncertain; the SEC has not issued binding guidance on whether custodians offering staking services assume liability for network participation.
The partnership depends on regulators approving the arrangement. BNY Mellon has not disclosed which staking protocols or blockchains it plans to support, nor has it announced pricing or minimum deposit sizes. Galaxy declined to comment beyond the joint announcement.
