BNY, Abu Dhabi Firms Launch Major UAE Crypto Custody Infrastructure Push

What to know:

• BNY joins Abu Dhabi firms to expand regulated crypto custody infrastructure globally.
• UAE pushes institutional blockchain adoption through major BNY digital asset partnership.
• Abu Dhabi advances crypto finance ambitions with new Bitcoin custody collaboration.

Abu Dhabi strengthened its position in digital finance after BNY partnered with Finstreet Limited and ADI Foundation to develop a regulated crypto custody infrastructure within the UAE. The collaboration focuses on institutional digital asset services while expanding secure blockchain-based financial operations across the region.

BNY Targets UAE Digital Asset Custody Expansion

According to a statement shared with 36crypto, the collaboration will establish institutional-grade custody services anchored in Abu Dhabi Global Market. Initially, the platform will support custody for Bitcoin and Ethereum while serving clients connected to Finstreet’s expanding ecosystem.

Moreover, the initiative arrives as global financial institutions continue increasing exposure to regulated digital asset infrastructure. Abu Dhabi has steadily attracted blockchain firms and financial companies through policies supporting digital finance innovation and institutional participation across multiple sectors.

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BNY, recognized as the world’s largest custodian bank, stated that the collaboration reflects its broader strategy involving traditional finance and digital markets. Consequently, the company plans to extend its digital asset capabilities into a jurisdiction emphasizing regulatory modernization and technology-driven financial services.

Finstreet and ADI Foundation will provide blockchain infrastructure and digital market technology supporting the custody framework. Additionally, the companies intend to create a localized solution tailored for UAE institutions seeking compliant digital asset exposure and regulated blockchain services.

UAE Expands Institutional Focus on Blockchain Finance

The partnership also highlights Abu Dhabi’s ambition to become a leading destination for regulated blockchain finance. Authorities within the UAE have increasingly encouraged institutional adoption through licensing frameworks and infrastructure development supporting tokenized finance and digital asset operations.

According to the release, Hani Kablawi, Executive Vice Chair at BNY, said the UAE is entering a new financial phase supported by stronger digital connectivity and expanding capital markets. He added that BNY intends to connect traditional financial systems with digital ecosystems throughout the region.

Meanwhile, Ajay Bhatia from ADI Foundation explained that Abu Dhabi’s regulatory environment, combined with BNY’s expertise, could support future opportunities involving custody, lending, and trade finance. Besides cryptocurrency custody, the companies later plan to explore stablecoins and tokenized real-world assets.

Finstreet Co-Founder Akshay Mahajan stated that Abu Dhabi continues positioning itself as a global gateway for digital securities and blockchain-powered markets. The announcement also follows the recent launch of the UAE-regulated dirham-backed stablecoin DDSC, targeting institutional and government adoption.

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