BNY to add crypto staking via Galaxy Digital partnership

BNY announced on Aug. 4, 2026, that it has partnered with Galaxy Digital to add crypto staking to its Digital Asset Custody platform. The offering will integrate Galaxy’s validator infrastructure into BNY’s custody workflows and is subject to regulatory approval before a planned 2026 launch.

BNY held $62.6 trillion in assets under custody or administration as of June 30, 2026. Galaxy Digital reported managing about $3.2 billion in staked assets as of March 31, 2026. Galaxy operates proof-of-stake validators across networks including Ethereum and Solana. Under the agreement, Galaxy will run the validator infrastructure and act as a design partner on BNY’s broader digital asset platform rather than serving only as an outside vendor.

Staking lets holders lock certain cryptocurrencies to help validate and secure a blockchain and earn rewards in return. Institutional clients that seek both custody and staking often split assets across multiple providers, which adds operational steps and separate compliance reviews. BNY plans to embed staking within its existing custody product so eligible clients can pursue staking rewards while keeping assets in the same custody, fund accounting, tax reporting and client reporting systems used for other holdings.

The banks have not disclosed which tokens will qualify for staking or which client groups will receive initial access. The service requires regulatory clearance before it becomes available.

Risks associated with staking include validator failures and potential slashing penalties if infrastructure goes offline or violates network rules. Some staked assets can be locked for fixed periods, and the tax treatment of staking rewards varies across jurisdictions and continues to change.

Carolyn Weinberg, BNY’s chief product and innovation officer, said clients want more than safekeeping and that the bank aims to provide additional capabilities through an institutional-grade model. Steve Kurz, Galaxy’s global co-head of digital assets, framed the collaboration as bringing Galaxy’s institutional-grade staking infrastructure into a framework large institutions can trust.

BNY has expanded its digital asset services in recent months: it custodies bitcoin and ether, supports most U.S. spot bitcoin and ether ETFs, launched tokenized deposit services in January 2026, and added USDC custody support in June 2026. The immediate next step for the staking offering is regulatory review; the firms plan to share details on eligible cryptocurrencies, client eligibility and timing after approvals are secured.