BNY to Launch Institutional Bitcoin, Ethereum Escrow for Investors in UAE
BNY has partnered with Abu Dhabi FinStreet and ADI Foundation to develop institutional digital asset protection services for clients in the UAE.
The initial focus will be on Bitcoin and Ether custody for Finstreet's existing clients, with plans to later extend it to ADI Foundation's blockchain infrastructure, the world's largest custodian said in an announcement Thursday. Although no timeframe was given, the companies said they plan to expand the product's scope to include stablecoins, real-world assets and other regulated digital instruments.
“BNY is uniquely positioned to bridge the traditional and digital financial ecosystem,” said Hani Kablawi, BNY's Executive Vice Chairman. BNY claims to be the first US international strategically important bank to offer digital asset protection.
The three firms provide digital asset protection services from the Abu Dhabi Global Market (ADGM), an international financial hub, and the Al Maria Island Free Zone. The initiative remains subject to proper agreements and regulatory approvals, according to BNY.
Related: UAE Free Zone Unveils Blockchain-Based Business IDs for Registered Firms
The UAE's stablecoin infrastructure will expand.
Finstreet is a subsidiary of Sirius International Holdings, which is backed by UAE conglomerate IHC. IHC recently joined other institutions as DDSC, a dirham-backed stablecoin controlled by the UAE Central Bank. The stablecoin is powered by the ADI Chain, an institutional layer-2 blockchain developed by the ADI Foundation.
PUSD, a Sharia-compliant stablecoin backed by reserves held by the Saudi riyal and UAE dirham, is also expected to launch on the ADI Chain.
In the year By 2025, ADI Chain has signed memorandums of understanding with BlackRock, Mastercard and Franklin Templeton on asset distribution and digital financial infrastructure.
The UAE has continued to develop its digital asset regulatory framework and token infrastructure in recent years, with licensing firms introducing laws covering token stocks, ETFs and crypto derivatives, including Animoka Brands, BitGo and Binance.
Cointelegraph reached out to BNY for comment, but did not receive a response by press time.
Related: UAE Investors Buy AI Dip, Hold Crypto Exposure Despite Conflict
The UAE has launched a stable coin-based exchange train.
BNY's collaboration comes as Abu Dhabi companies move into regulated digital asset infrastructure.
In Thursday's announcement, AE Coin and USD Universal said they are building a regulated exchange train that will feature institutional payments and treasury management that will enable rapid exchanges between the UAE dirham-pegged AE Coin and the US dollar-backed USDU stablecoin.
The system will run on Al Mariah Community Bank's infrastructure and will initially be accessible through two UAE-controlled digital asset service providers, Aquanow and Chander.A.
Magazine: A Guide to Up and Emerging Global Crypto Hubs: Mid-2026
