Galaxy has announced a strategic partnership with BNY to expand institutional digital asset infrastructure beyond custody services. The collaboration reflects rising demand from major financial institutions for blockchain-enabled financial services that are secure, regulated, and built to operate under robust institutional controls.

Galaxy and BNY Expand Institutional Crypto Infrastructure

Under the partnership, Galaxy will provide staking infrastructure for BNY’s Digital Asset Custody platform. The arrangement will allow qualified institutional investors to stake supported proof-of-stake (PoS) tokens and earn staking rewards without moving tokens out of BNY custody.

The companies said they are aiming for a streamlined institutional workflow by combining custody and staking within a single servicing model, a structure that could matter for large firms that need to keep asset handling, reporting, and controls within established operational frameworks.

In addition to supporting staking, Galaxy will serve as a design partner on BNY’s broader digital asset platform and help shape the infrastructure intended to serve institutions and other blockchain-based services. Staking functionality is still being implemented and remains subject to regulation.

BNY Chief Product and Innovation Officer Carolyn Weinberg said custody remains an important foundation of digital asset services, but institutions are increasingly asking digital asset platforms to offer more than safekeeping alone.

She said the partnership supports BNY’s strategy of building future financial infrastructure and will help strengthen its digital asset capabilities with trusted governance, operational resilience, and institutional-grade controls.

Institutions Push Beyond Crypto Custody

The collaboration comes as major financial firms continue to integrate cryptocurrency services with blockchain-native financial products. Staking has gained popularity among institutional investors because it can provide an additional source of returns from PoS networks while allowing investors to keep their underlying assets.

That shift has pushed custodians and service providers to build products that fit institutional compliance and operations, not just wallet storage. In practice, that means connecting staking with existing workflows rather than forcing clients to manage assets across separate venues.

Integrated Services Aim to Reduce Operational Complexity

Where applicable, eligible clients will be able to use staking alongside custody, fund accounting, tax reporting, payments, and reporting services within the BNY servicing platform. The companies said this setup is designed to reduce fragmented workflows by streamlining the process and allowing assets to move more seamlessly between services.

Galaxy Global Co-Head of Digital Assets Steve Kurz said financial markets are moving toward open and programmable blockchain infrastructure. He said institutions that adopt these technologies early will help shape the next phase of digital finance, and added that Galaxy brings years of experience building institutional-grade staking infrastructure.

Traditional Finance Continues Blockchain Expansion

The partnership further reinforces BNY’s position in digital assets as one of the first major global banks to offer regulated digital asset custody services. In recent years, the bank has expanded into tokenized asset administration and blockchain-based financial infrastructure.

For Galaxy, the alliance with one of the world’s largest financial institutions supports its strategy of providing enterprise-class blockchain infrastructure services to traditional finance.

The agreement also highlights the growing role of staking within institutional digital asset services, giving regulated investors access to blockchain network security and onchain rewards through trusted financial intermediaries as more market participants look for services that fit existing institutional standards.