BNY, the world’s largest custodian bank overseeing $59.4 trillion in assets, announced on Thursday a strategic collaboration with Finstreet Limited and the ADI Foundation to offer regulated digital asset custody services in Abu Dhabi Global Market (ADGM), marking its first expansion of crypto custody into the Middle East.
A New Crypto Gateway in the Gulf
The initiative, subject to definitive agreements and regulatory approval, will initially provide custody for Bitcoin and Ethereum acquired by clients of Finstreet, with plans to later expand into stablecoins, tokenized real-world assets, and other regulated digital instruments. BNY becomes the first U.S. global systemically important bank to offer crypto custody in the region.
Finstreet, which operates a multilateral trading facility and clearing house, is a subsidiary of IHC, the large conglomerate controlled by Abu Dhabi’s ruling royal family. The ADI Foundation will provide its blockchain infrastructure — described as “sovereign-grade” — as a base layer for digital finance in Abu Dhabi. Ajay Bhatia, Principal Council Member at ADI Foundation, said the platform’s “institutional-grade digital infrastructure will unlock new opportunities in custody, trade finance, and lending from Abu Dhabi to the world.”
Building on U.S. Experience
BNY has operated a digital asset custody platform in the United States since 2022 and will layer its asset servicing, risk controls, and reporting capabilities on top of the local infrastructure. Finstreet will contribute tools connecting custody to trading, settlement, and other capital markets functions, while BNY provides its global systems and compliance framework tailored to UAE regulations.
Abu Dhabi’s Digital Finance Ambitions
ADGM has emerged as a Middle East hub for crypto firms and blockchain projects. The ADI blockchain launched only in December, and its most notable initiative so far has been the debut in February of the central bank-regulated stablecoin DDSC, with First Abu Dhabi Bank as a key partner. The partnership with BNY represents a broader push by the UAE to attract institutional-grade financial infrastructure to anchor its digital economy strategy.
