Bank of New York Mellon Enhances Abu Dhabi’s Digital Asset Scene
Bank of New York Mellon (BNY) is set to enhance Abu Dhabi’s burgeoning digital asset scene by providing regulated custodial services, thanks to a new partnership with Finstreet Limited and ADI Foundation. This initiative, which will begin by securing Bitcoin and Ethereum holdings, will be established within the Abu Dhabi Global Market (ADGM)—a prominent financial free zone that has emerged as a significant hub for digital asset enterprises in the United Arab Emirates.
Future Plans and Regulatory Approvals
Future plans include expanding the custodial services to accommodate various digital assets, such as stablecoins and tokenized real-world assets. However, the execution of this initiative is contingent upon finalizing agreements and securing regulatory approvals.
Partnership Details
Finstreet Limited, a digital market infrastructure company and a subsidiary of the International Holding Company through its division Sirius International Holding, operates licensed services for market trading, custody, settlement, and investment advisory within ADGM. Meanwhile, the ADI Foundation will provide local blockchain infrastructure support, utilizing its ADI Chain—an institutional Layer 2 solution targeted for stablecoins and real-world assets in the MENA region.
Insights from BNY’s Executive
Hani Kablawi, who serves as executive vice chair at BNY, highlighted the UAE’s evolving financial landscape, noting its transition towards more sophisticated markets and enhanced global connections. He emphasized that BNY is well-positioned to integrate traditional and digital financial systems for its clients.
Regulated Digital Asset Activities in Abu Dhabi
This development aligns with the ongoing increase in regulated digital asset activities in Abu Dhabi. For instance, as reported by crypto.news, Tether’s USDT was officially recognized as an approved virtual asset in the ADGM in December 2024, allowing entities regulated by the Financial Services Regulatory Authority (FSRA) to provide USDT-based services. Earlier, in March 2026, Ondo Finance gained approval to trade tokenized U.S. stocks and ETFs in the ADGM, marking another step towards a regulated framework for digital finance—showing how the Emirate is facilitating stablecoins, tokenized assets, and custody solutions.
BNY’s Role in Institutional Crypto Custody
Given that BNY administers an enormous $59.4 trillion in assets and manages an additional $2.1 trillion, its involvement in Abu Dhabi’s crypto custody landscape is significant. The bank caters to over 90% of Fortune 100 companies and virtually all of the world’s top 100 banks. This significant contribution positions BNY as a pivotal player in institutional crypto custody, a service essential for large clients needing secure storage and regulated access to digital assets.
Commitment to Abu Dhabi’s Strategic Vision
Furthermore, BNY’s commitment to join Abu Dhabi’s strategic vision enhances the Emirate’s efforts to foster a robust ecosystem for tokenized finance, creating vital connections between global banking institutions, digital asset infrastructure, and local regulatory environments.
