BNY and Galaxy Launch Institutional Staking Partnership - Blockonomi

by · Blockonomi

TLDR

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  • BNY plans to add crypto staking to its Digital Asset Custody platform.
  • Galaxy Digital will provide the validator infrastructure for the service.
  • The platform will combine custody, staking, tax reporting, and fund accounting.
  • Institutional clients could earn staking rewards without transferring assets to another provider.
  • The service remains subject to regulatory approval.

BNY and Galaxy Digital have announced a partnership to bring institutional crypto staking into BNY’s Digital Asset Custody platform. The planned service will combine custody, staking, tax reporting, fund accounting and client reporting within one system, subject to regulatory approval.

The firms announced the agreement on Aug. 4, 2026. The structure aims to reduce the need for institutions to move digital assets between separate custody and staking providers.

BNY Builds Staking Into Custody Services

BNY plans to let eligible institutional clients earn staking rewards while keeping their assets within its existing custody framework. Clients would also retain access to the bank’s reporting, accounting and tax support tools.

The model targets pension funds, insurers and asset managers that require strict controls over digital assets. These firms often face extra compliance work when they transfer assets outside established custody systems to access staking services.

Galaxy Digital will supply the validator technology that supports the staking service. Its infrastructure helps proof-of-stake networks process transactions, protect the network and distribute rewards to participants.

Galaxy operates validators across networks such as Ethereum and Solana. The company reported about $3.2 billion in staked assets as of March 31, 2026, and will also act as a design partner for BNY’s wider digital asset platform.

One Platform Links Reporting and Rewards

The planned service will place custody, staking rewards, fund accounting and tax reporting under one operational structure. This setup could help institutions manage digital assets through systems already used for traditional investments.

BNY already supports bitcoin and ether custody and provides services for many United States spot crypto ETFs. The bank also launched tokenized deposit services in January 2026 and added USDC custody support in June. BNY managed $62.6 trillion in assets as of June 30.

The staking service cannot launch until it receives the required regulatory approvals. BNY has not yet confirmed which cryptocurrencies will qualify or which institutional clients will receive access first.

Clients will still face staking risks, including validator downtime, slashing penalties and asset lock-up periods. Tax rules for staking rewards also differ across jurisdictions and continue to change.

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