BNY is expanding beyond safekeeping by adding staking services for institutional digital asset clients through a partnership with Galaxy, extending a custody model that has increasingly become part of the broader digital asset infrastructure used by large financial firms.

BNY and Galaxy have partnered to integrate institutional crypto staking into BNY’s digital asset custody platform, allowing eligible clients to earn staking rewards without moving assets out of custody.

Under the arrangement, which was unveiled on Tuesday, institutional clients will be able to stake supported proof-of-stake assets while keeping them within BNY’s custody framework. Galaxy will provide the staking infrastructure and serve as a design partner for BNY’s broader digital asset platform. The companies did not specify which digital assets will be supported.

The partnership also aims to combine custody, staking, reporting, and tax services into a single offering for institutional clients, a move the companies said could simplify digital asset operations and reduce the number of separate workflows institutions need to manage across trading, storage, and back-office functions.

The arrangement expands BNY’s push to integrate digital assets into traditional financial infrastructure. The bank was among the first major financial institutions to offer regulated custody for cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), and has since broadened its digital asset strategy through initiatives including tokenized fund administration and efforts to move transfer agency records onchain.