Key facts
- BNY Mellon is launching cryptocurrency staking services.
- BNY Mellon is partnering with Galaxy for this offering.
- The services will be integrated into BNY Mellon's digital asset custody platform.
- The target clients are institutional investors.
- The service allows clients to earn rewards from proof-of-stake networks.
- Clients will not need to move assets from custody to stake them.
BNY Mellon is set to introduce cryptocurrency staking services for its institutional clients, marking a significant expansion into the digital asset space. The bank is collaborating with Galaxy, a digital asset financial services company, to integrate these new staking capabilities into BNY Mellon's existing digital asset custody platform. This strategic partnership aims to streamline the process for institutional investors to participate in proof-of-stake (PoS) networks. By offering staking directly within the custody environment, clients will be able to earn rewards on their staked assets without the need to move them from BNY Mellon's secure custody. This approach is designed to simplify the complexities associated with staking, such as managing private keys and interacting with various blockchain protocols, while also enhancing the potential yield for clients' digital asset holdings. The integration is expected to provide a more secure and efficient way for institutions to engage with the growing crypto economy.