Galaxy Digital and BNY have announced a strategic collaboration to optimise digital asset infrastructure for institutional markets, including support for staking on BNY's Digital Asset Custody platform. Staking is a process that allows eligible digital assets to earn rewards, and the collaboration is intended to bring digital asset custody and staking together within a single institutional servicing model.
Combining custody infrastructure with staking capabilities
The collaboration combines BNY's Digital Asset Custody platform with Galaxy's expertise in proof-of-stake networks, aiming to provide clients with an integrated workflow for participating in staking within an institutional-grade model. In addition to staking, Galaxy is serving as a design partner supporting the broader development of BNY's digital asset platform infrastructure. BNY's offering of staking and related infrastructure enhancements remains subject to regulatory review.
Company commentary
A company official at BNY said clients are increasingly seeking capabilities beyond custody alone, and that the collaboration with Galaxy, an early client of BNY's Digital Asset Custody platform, reflects the company's approach to expanding its digital asset capabilities while maintaining existing governance, controls, and resiliency standards. The official said the addition of staking is intended to provide clients with a more comprehensive digital asset custody offering.
A company official at Galaxy said the company has invested in building institutional-grade digital asset infrastructure, including staking capabilities, over several years, and described the collaboration with BNY as bringing that infrastructure into a framework designed for large institutional clients. The official said Galaxy's role as a design partner is intended to help shape the underlying infrastructure supporting these services.
Servicing model for institutional clients
Eligible institutional clients will be able to access staking within BNY's broader servicing model, which includes custody, fund accounting, tax reporting, payments, and client reporting, where applicable. According to the companies, this approach is intended to give institutions a more efficient way to participate in digital asset markets while maintaining the operational safeguards and asset protections associated with BNY's existing custody model.
Broader context
The collaboration reflects continued interest among established financial services providers in expanding institutional digital asset infrastructure beyond custody services, incorporating capabilities such as staking as institutional demand for broader digital asset participation continues to develop, subject to regulatory approval.
