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BNY Mellon is expanding its digital asset business into the United Arab Emirates through a partnership with Abu Dhabi based Finstreet and the ADI Foundation, marking a further step in the bank’s effort to bridge traditional finance with crypto infrastructure.
The custody giant said it plans to offer institutional services for Bitcoin and Ethereum through Abu Dhabi Global Market, the capital’s international financial center. The initiative remains subject to regulatory approvals and final agreements.
The initial rollout will focus on custody for Finstreet’s existing clients, with plans to expand into stablecoins, tokenized real world assets and other regulated digital instruments over time.
🇦🇪 BNY Mellon is launching crypto custody services in the UAE. The first phase will support institutional custody for $BTC and $ETH, with stablecoins and tokenized assets planned later.
BNY Mellon is the oldest bank in the US and one of the world’s largest custodians, managing… pic.twitter.com/gB5Sb6e02d
— Watcher.News (@watchernewsx) May 7, 2026
BNY Mellon oversees roughly $59 trillion in assets under custody and administration alongside more than $2 trillion in assets under management, making it one of the world’s largest financial custodians. The bank was also among the first major US lenders to launch digital asset custody infrastructure for institutional clients.
The Abu Dhabi initiative will initially support custody for Finstreet’s clients before expanding into stablecoins and tokenized financial products over time. Executives have framed the strategy around integration rather than disruption, with custody seen as a foundational layer for broader services such as tokenization and on-chain settlement.
“BNY is uniquely positioned to connect traditional and digital financial ecosystems,” Hani Kablawi, executive vice chair at the bank, said in a statement.
The move also comes as BNY Mellon increases indirect exposure to Bitcoin-linked markets. Recent filings showed the bank raised its holdings in Strategy to roughly one million shares worth about $187 million, according to data shared by BTC Treasuries.
JUST IN: $2.1 trillion BNY Mellon just disclosed it bought 101,810 shares ($18.7 million) more of #Bitcoin treasury company Strategy $MSTR and now holds a total of 1 million shares ($187.2 million). pic.twitter.com/Y4fpELdmES
— BitcoinTreasuries.NET (@BTCtreasuries) May 7, 2026
The partnership also highlights Abu Dhabi’s rising role as a center for regulated digital asset activity. Abu Dhabi Global Market has developed a framework that allows firms to operate across custody, trading and asset issuance, attracting global players in recent years.
Finstreet is a subsidiary of Sirius International Holding, backed by Abu Dhabi conglomerate IHC, while the ADI Foundation is developing ADI Chain, an institutional layer two blockchain focused on financial infrastructure and tokenized asset settlement.
The UAE has taken a proactive approach to crypto regulation, licensing firms such as exchanges and custodians while introducing rules covering tokenized securities and digital asset derivatives. The strategy is part of a broader effort to diversify financial services and position the country as a global fintech hub.
The expansion comes as stablecoin infrastructure in the UAE accelerates. Entities linked to IHC have supported the launch of a dirham backed stablecoin under central bank oversight, while additional projects are exploring Shariah compliant digital currencies tied to regional reserves.
At the same time, Abu Dhabi based firms are developing regulated conversion rails that enable near instant exchange between local currency stablecoins and US dollar denominated tokens. These systems are aimed at institutional payments and treasury management, reflecting a shift toward practical use cases beyond trading.
For global banks, custody is increasingly seen as a critical entry point into digital assets. As markets evolve from speculative trading toward settlement, payments and tokenized securities, secure storage and compliance infrastructure are becoming essential.
BNY Mellon’s expansion into Abu Dhabi underscores how traditional financial institutions are positioning themselves to support that transition. With regulatory clarity improving in jurisdictions such as the UAE, partnerships like this are likely to play a central role in shaping how digital assets are integrated into mainstream finance.
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