BNY strengthens its global crypto custody strategy by expanding into Abu Dhabi through a new partnership focused on secure digital asset infrastructure and blockchain adoption.
BNY, one of the world’s largest financial institutions, has expanded its crypto custody strategy into Abu Dhabi. This aligns with the growing demand for regulated digital asset services worldwide.
This significant advancement in the crypto sector is taking place. Bloomberg reports that Payward Inc., the parent company of Kraken, has signed a deal to buy Hong Kong-based Reap Technologies for $600 million. Reap specializes in payments and cross-border financial services using stablecoins.
BNY Strengthens Digital Asset Strategy in Abu Dhabi
BNY is expanding its presence in Abu Dhabi through a strategic partnership with Finstreet and the ADI Foundation. The partnership is designed to create a secure and compliant digital asset custody platform for clients in the UAE.
🚨BNY EXPANDS CRYPTO CUSTODY TO UAE
$59.4T global financial services platform BNY will offer digital asset custody in Abu Dhabi via local partners, starting with $BTC and $ETH.
Plans include expanding to stablecoins and tokenized assets, as the UAE pushes to become a global hub… pic.twitter.com/mFujcITtYA
— Coin Bureau (@coinbureau) May 7, 2026
In addition, the project aims to meet the growing demand for regulated crypto services in the area. The city of Abu Dhabi is a key player in the financial technology sector, with its clear regulations and robust government support. This has led to the emergence of numerous international institutions in the market today.
Reading more: BNY Mellon Unveils 2026 Roadmap Focused on Tokenized Deposits, Speed, and AI – Ledger Tribune
The partnership will start with providing custody services for the top cryptocurrencies like Bitcoin and Ethereum. It will grow into more sophisticated financial products over time, however. These include regulated digital instruments, tokenized real-world assets, and stablecoins.
Moreover, the system will integrate Finstreet’s digital ecosystem and ADI Foundation’s sovereign blockchain infrastructure. This integration is anticipated to enhance the velocity, security, and openness of monetary transactions. Thus, it may contribute to the development of increased trust in digital asset systems.
Abu Dhabi’s Growing Role in Global Crypto Finance
According to Ajay Bhatia, Principal Council Member at ADI Foundation, this partnership represents a major step forward. He said that the regulatory clarity in Abu Dhabi, together with BNY’s global banking expertise, will create new financial opportunities.
Furthermore, the ADI Chain infrastructure will enable services like custody, trade finance and lending. This will enable financial institutions to run their businesses more efficiently without compromising regulatory requirements.
Moreover, Abu Dhabi has been making concerted efforts to develop its digital asset ecosystem. It already has projects such as regulated stablecoins under its financial authority. This new collaboration, therefore, reinforces its role as a global leader in blockchain innovation.
The bank’s decision is noteworthy because it has about $59.4 trillion in assets. Therefore, its announcement of crypto custody expansion is a significant message to the worldwide financial sector.
Global Expansion and Parallel Crypto Industry Growth
The crypto sector continues to grow at a fast pace, though. Payward Inc. has also inked another significant agreement with Reap Technologies to bolster its payment network for stablecoins.
Moreover, the acquisition marks the traditional crypto companies’ deeper penetration into the real-world financial services. The transaction is worth $600 million and is made up of cash and stock.
Meanwhile, both developments emphasize a trend. The collaboration between financial institutions and crypto companies to create robust digital asset ecosystems is underway. So, the distinction between conventional banking and blockchain finance is becoming increasingly blurred.
Meanwhile, BNY first introduced crypto custody services in the U.S. in 2022. The bank’s expansion in Abu Dhabi is now making it more global.
To sum up, BNY’s move to Abu Dhabi and Payward’s purchase of Reap are both significant global finance changes. With institutions increasingly embracing blockchain technology, digital assets are playing a significant role in the future financial system.