Digital asset company Galaxy and financial services group BNY have announced a strategic collaboration to expand institutional digital asset infrastructure, including plans to add staking support to BNY’s Digital Asset Custody platform.
The companies said the arrangement will combine custody and staking within a single servicing model, allowing eligible institutions to hold certain digital assets with BNY while using Galaxy’s infrastructure to participate in proof-of-stake networks and earn rewards.
Staking becomes part of BNY’s servicing model
Under the proposed model, Galaxy will provide expertise in proof-of-stake networks, while BNY will integrate staking into its existing digital asset custody operations.
BNY said eligible clients would be able to access staking alongside services such as fund accounting, tax reporting, payments and client reporting, where applicable.
The companies said the structure is intended to reduce the operational burden of using separate providers for custody and staking, while keeping the assets within BNY’s broader servicing framework.
Carolyn Weinberg, BNY’s chief product and innovation officer, said institutional clients were increasingly seeking services beyond basic safekeeping as their participation in digital asset markets expands.
“The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows,” added Steve Kurz, Global Co-Head of Digital Assets at Galaxy.
Galaxy joins BNY as infrastructure design partner
Beyond staking, Galaxy will also serve as a design partner for BNY’s wider digital asset infrastructure.
The role will involve helping shape parts of the platform used to support institutional digital asset services, although the companies did not disclose financial terms, a launch date or which assets would initially be eligible.
Steve Kurz, Galaxy’s global co-head of digital assets, said the collaboration was intended to bring the company’s staking infrastructure into a framework suited to large financial institutions.
What institutional staking brings to BNY clients
Institutional staking allows professional investors to deploy eligible digital assets on proof-of-stake networks, helping validate transactions and secure the blockchain in exchange for potential returns through network rewards.
Unlike retail staking, institutions typically require custody controls, governance, tax reporting and operational oversight around that activity.
The Galaxy-BNY arrangement would place staking inside BNY’s existing servicing model, alongside custody, accounting, payments and client reporting, reducing the need to coordinate multiple providers.
Galaxy would provide staking and network expertise within BNY’s broader client-service framework, with the offering subject to regulatory review and returns varying according to network conditions and validator performance.
Partnership forms part of BNY’s 24/7 market vision
The BNY-Galaxy partnership comes as the bank advances a wider blockchain strategy, including plans to pilot tokenized US Treasuries on its private network by the end of 2026 and move toward 24/7 settlement for traditional and tokenized Treasuries in 2027.
Earlier in the year, BNY completed an after-hours post-trade Treasury transaction after the Fedwire Securities Service had closed, involving reserves linked to Ripple’s RLUSD and OpenEden’s USDO stablecoins.
The bank has said rising demand for stablecoins and tokenized Treasury funds is pushing traditional market infrastructure toward continuous operation.
