BNY, the world’s largest custodian bank and the first U.S. global systemically important bank to offer digital asset custody, is expanding into the United Arab Emirates through a strategic collaboration with Finstreet Limited and ADI Foundation.
The three parties announced on Wednesday that they intend to build regulated, institutional-grade digital asset custody infrastructure anchored in the Abu Dhabi Global Market (ADGM), the emirate’s international financial free zone that has emerged as a leading hub for regulated crypto activity in the Middle East.
The collaboration will initially focus on Bitcoin and Ethereum custody for Finstreet’s clients and ecosystem. The partners plan to progressively expand the scope to include stablecoins, tokenized real-world assets, and other regulated digital instruments—and eventually extend to ADI Foundation’s underlying blockchain rails.
Who’s Involved
The partnership brings together three distinct layers of infrastructure. BNY, which oversees $59.4 trillion in assets under custody and administration as of March 2026, provides the institutional custody backbone.
Finstreet Limited, a digital market infrastructure group and subsidiary of International Holding Company (IHC) through Sirius International Holding, contributes to the digital market ecosystem—including licensed trading, clearing, and advisory capabilities within ADGM.
ADI Foundation, also founded by Sirius (IHC’s digital arm), provides sovereign-grade blockchain infrastructure through ADI Chain, the first institutional Layer 2 blockchain for stablecoins and real-world assets in the MENA region.
The IHC connection is significant. IHC is the most valuable holding company in the Middle East, with a market capitalization of approximately AED 878.5 billion ($239 billion), and along with First Abu Dhabi Bank, it recently launched DDSC — a dirham-backed stablecoin fully regulated by the UAE Central Bank that runs on ADI Chain.
“This strategic collaboration is an important step in further cementing Abu Dhabi’s place as a global digital asset hub,” said Ajay Bhatia, Principal Council Member at ADI Foundation.
Abu Dhabi’s Institutional Play
The move aligns with Abu Dhabi’s broader push to position itself as the institutional-grade alternative in the UAE’s crypto landscape. While Dubai’s VARA framework has attracted retail-facing exchanges and Web3 startups, ADGM has built its reputation on institutional rigor—operating under English common law with strict licensing categories for exchanges, custodians, and tokenization platforms.
“The UAE is entering a new phase of financial development, characterized by deeper markets, greater digital sophistication and stronger global connectivity,” said Hani Kablawi, Executive Vice Chair at BNY. “Together with IHC and its subsidiaries Finstreet and ADI Foundation, we are proud to be building the financial infrastructure for the future.”
BNY’s expansion follows a series of major institutional entrants into ADGM. Galaxy Digital opened an ADGM office in December 2025; Circle secured an FSP license for USDC payment services; and Tether’s USDt received recognition as an accepted fiat-referenced token across multiple blockchains within ADGM.
From Custody to Full-Stack Digital Finance
Akshay Mahajan, Co-Founder and Group Director of Finstreet Limited, framed the collaboration as positioning Abu Dhabi as a global gateway. “As the primary access point for digital securities, Finstreet is the global gateway to Abu Dhabi’s financial ecosystem,” he said.
The phased roadmap — starting with BTC and ETH custody, then moving to stablecoins and tokenized assets, and eventually incorporating ADI Chain’s settlement infrastructure — signals an ambition to build a full-stack regulated digital finance hub rather than a standalone custody offering.
BNY’s stock (NYSE: BK) trades around $86. Bitcoin is currently near $81,400, with Ethereum at approximately $2,317.
Also Read: Morgan Stanley Deepens Crypto Push With MSBT Launch
