Key Takeaways
BNY, which holds $62.6 trillion in custody assets, will add staking to its platform.Galaxy Digital manages about $3.2 billion in staked assets as of March 31, 2026.BNY’s staking service still awaits regulatory review ahead of its 2026 rollout.
The two companies announced the collaboration on Aug. 4, 2026. Staking lets holders of certain cryptocurrencies lock up their coins to help validate and secure a blockchain network in return for rewards. Until now, institutions chasing both institutional-grade custody and staking income typically had to split assets across multiple providers, creating extra operational and compliance headaches.
BNY plans to integrate staking directly into its Digital Asset Custody platform. That means eligible institutional clients could earn staking rewards while keeping assets under the same custody, fund accounting, tax reporting and client reporting systems already used for traditional holdings. The offering still requires regulatory approval before it becomes available.
Galaxy Powers the Infrastructure
Galaxy Digital supplies the infrastructure that actually keeps validators online and producing rewards. The firm operates proof-of-stake (PoS) validators across networks, including Ethereum and Solana, and reported managing about $3.2 billion in staked assets as of March 31, 2026. Galaxy is also serving as a design partner for BNY’s broader digital asset platform rather than simply acting as another staking provider.
Carolyn Weinberg, Chief Product and Innovation Officer at BNY, explained the thinking behind the move. “As digital assets continue to evolve, clients want more than safekeeping alone, they want a broader set of capabilities delivered through an institutional-grade model,” she explained.
The BNY executive added:
“Our work with Galaxy, an early client of BNY’s Digital Asset Custody platform, reflects our strategy of building the financial infrastructure of the future while continuing to expand our digital asset capabilities. With the addition of staking, we will be providing clients with a more comprehensive digital asset custody offering built on the governance, controls and resiliency they expect from BNY.”
Steve Kurz, Global Co-Head of Digital Assets at Galaxy, framed the deal as part of a larger shift in finance. “The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows,” he remarked. “Galaxy has spent years building the institutional-grade infrastructure to drive that shift, including staking. Our collaboration with BNY brings that work into a framework the world’s largest institutions can trust. As a design partner on BNY’s platform infrastructure, we’re helping shape the foundation on which these services will run.”
Wall Street Removes Another Barrier
The move extends BNY’s steady expansion into digital assets. As of June 30, 2026, the bank held $62.6 trillion in assets under custody or administration. It already custodies bitcoin (BTC) and ethereum (ETH), supports most U.S. spot bitcoin and ether exchange-traded funds (ETFs), launched tokenized deposit services in January 2026, and added USDC custody support in June 2026.
For pension funds, asset managers and insurers, the attraction is practical rather than speculative. Institutions rarely object to staking itself. The bigger obstacle has been moving assets outside long-established custody frameworks just to collect validator rewards. Keeping custody, reporting, and crypto staking under one roof removes one of the biggest operational hurdles that has slowed institutional participation.
Regulators Hold the Final Key
Risks have not disappeared. Staking still exposes participants to validator failures, including slashing penalties if infrastructure goes offline or violates network rules. Assets can also remain locked for periods of time, while the tax treatment of staking rewards continues to evolve across several jurisdictions.
The next catalyst will be regulatory approval, followed by details on which cryptocurrencies qualify and which institutional clients receive access first once the staking service officially launches.
