Bank of New York, the world’s largest custodian with $59 trillion in assets under management, is expanding its digital asset custody business into the United Arab Emirates through local partners.
The global financial services giant is partnering with Finstreet and the ADI Foundation to build regulated digital asset infrastructure in Abu Dhabi Global Market (ADGM), a financial free zone in Abu Dhabi that has become a hub for crypto companies and blockchain projects to enter the Middle East, according to a press release on Thursday.
The plan will initially focus on custody services for cryptocurrencies, including Bitcoin The company plans to later expand into stablecoins and tokenized assets, the press release said.
“The UAE is entering a new phase of financial development, characterized by deeper markets, greater digitization and greater global connectivity,” Hani Kablawi, executive vice chairman of Bank of New York, said in a statement. “With our world-class capabilities and scale in capital markets, Bank of New York is uniquely positioned to work with clients to connect traditional and digital financial ecosystems.”
The move by the Bank of New York reflects a broader push by major financial institutions to bring blockchain technology into mainstream markets beyond cryptocurrency trading. Tokenization – the process of representing assets such as bonds, funds and stocks on a blockchain network – is gaining traction as businesses seek faster settlements, more efficient collateral management and lower operating costs.
The bank’s entry into the UAE also highlights the Gulf region’s rapid emergence as a financial hub for digital assets. Abu Dhabi and Dubai have attracted cryptocurrency exchanges, stablecoin issuers and tokenization startups with regulatory frameworks designed to support digital assets while maintaining institutional oversight.
The impact of Bank of New York’s involvement is greater because of its size and role in traditional finance. The company oversees approximately $59 trillion in custody and management assets, making it the world’s largest custodian bank and the first major U.S. global systemically important bank to launch digital asset custody services.
The UAE has also advanced its state-backed digital finance initiatives. The IHC and other local bodies unveiled plans as recently as last month to launch a regulated dirham-backed stablecoin intended for use by governments and institutions.
Read more: New York Bank CEO Says Cryptocurrency’s Future Runs Through Big Banks
