TL;DR:
- BNY Mellon partnered with Finstreet and ADI Foundation to develop institutional Bitcoin and Ether custody services for UAE clients through ADGM.
- The roadmap could expand toward ADI Foundation infrastructure, stablecoins, tokenized real-world assets and other regulated digital instruments.
- The partnership sits within Abu Dhabi’s broader digital finance buildout, including ADI Chain, dirham-backed DDSC, expected PUSD support and tokenized asset infrastructure relationships with major global firms over time.
BNY Mellon is extending its digital asset custody ambitions into the United Arab Emirates through a new partnership built around Abu Dhabi’s regulated financial hub. The bank has partnered with Abu Dhabi-based Finstreet and ADI Foundation to develop institutional custody services, initially focused on Bitcoin and Ether for Finstreet’s existing clients. The initiative is expected to operate from the Abu Dhabi Global Market, subject to definitive agreements and regulatory approvals. The notable shift is custody becoming the bridge into regional tokenization, as one of the world’s largest custodians seeks to connect traditional finance with UAE digital asset infrastructure.
ADGM Becomes the Launchpad for Institutional Crypto Custody
The first product scope is deliberately narrow, but the roadmap is broader. BNY said the initial focus is Bitcoin and Ether custody, with plans to later extend the offering to ADI Foundation’s blockchain infrastructure and add stablecoins, tokenized real-world assets and other regulated digital instruments. That sequencing matters because institutional crypto adoption is starting with safekeeping, not speculative trading, before expanding into programmable settlement assets and tokenized finance products that require custody, compliance and operational controls strong enough for large investors. This is less a retail access play than an institutional operating layer for clients that need clear fiduciary accountability.
The local infrastructure angle is equally important. Finstreet is a subsidiary of Sirius International Holding, backed by UAE conglomerate IHC, while ADI Foundation developed ADI Chain, an institutional layer-2 blockchain. IHC recently joined other institutions in launching DDSC, a dirham-backed stablecoin regulated by the UAE central bank. PUSD, a Shariah-compliant stablecoin backed by reserves in Saudi riyals and UAE dirhams, is also expected on ADI Chain. In practical terms, the custody partnership sits inside a growing regulated stablecoin stack, not an isolated crypto service.
The move also reflects Abu Dhabi’s effort to position itself as a serious digital finance center. ADI Chain signed memoranda of understanding in 2025 with BlackRock, Mastercard and Franklin Templeton tied to tokenized asset settlement and digital infrastructure. The UAE has also licensed firms including Animoca Brands, BitGo and Binance while introducing rules for tokenized stocks, ETFs and crypto derivatives. For BNY, the UAE offers a controlled expansion corridor, where institutional custody can meet blockchain settlement, stablecoins and tokenized assets without abandoning regulated-market discipline. The unanswered question is how quickly approvals turn this architecture into live client flows.
