Bank of New York Mellon (BNY), the world’s largest custodians, are reported to expand into cryptocurrency custody services in Abu Dhabi through a strategic alliance with Finstreet Limited and the ADI Foundation under Abu Dhabi Global Market (ADGM).
BNY oversees assets of $59.4 trillion approximately 9,290 trillion yen, and the expansion marks a major step in linking traditional finance to penetrate digital asset markets.
The partnership is primarily to offer institutional custody services for Bitcoin (BTC) and Ethereum (ETH), and to expand its financial services, such as stablecoin and real-world asset (RWA) tokenization.
Comprehensive Digital Financial Services
Finstreet Limited, a subsidiary of Sirius International Holding Company, preserves a license with the Abu Dhabi Global Market offering comprehensive digital financial services for institutions, covering the operation of Multilateral Trading Facility (MTF), custody and settlement, investment advisory, and fund management.
Blockchain-Based Network Approved by UAE Central Bank
The ADI Foundation, a non-profit blockchain infrastructure under Sirius International Holding, specializes on stablecoin and real-world asset (RWA) tokenization is structured to meet strict compliance and security standards and is being positioned as a foundational digital infrastructure within region such as Middle East, Asia, and Africa.
According to Principal Council Member of the ADI Foundation, Ajay Bhatia, the alliance of Abu Dhabi’s regulatory clarity and BNY’s financial expertise is projected to create new opportunities in terms of custody, trade finance, and lending through blockchain-based network.
The Regulatory Approval of Tether and Ondo Finance
ADGM continues to reinforce its place in leading the digital assets in the market. Under the Financial Services Regulatory Authority (FSRA), stablecoins such as Tether’s USDT have been approved for government and institutional use cases, allowing regulated digital asset services.
Additionally, ADGM approved the first trading of Ondo Finance’s tokenized U.S. stocks and ETFs, and the institutional digital securities started to trade on the MTF operated by Binance.
According to Hani Kabuloui, BNY’s executive Vice Chair, stated that UAE is penetrating a new stage of financial development and placing its connection between traditional and digital finance networks.
The Alliance with DDSC and its impact on the UAE Market
BNY, states that the integration of government and institutions is broadening the approval of the Central Bank of the UAE on the issuance of DDSC (dirham-denominated stablecoin).
Furthermore, the alliance between the three (3) companies could lead to the world’s largest custodians of digital asset market in the Middle East, signaling growing custody solutions and protections for institutional traders.
Overall, the alliance emphasizes the growing expansion of digital asset innovation in the Abu Dhabi Global Market. Thus, continued improvement of dirham-denominated stablecoin frameworks and real-world assets, the region is placing itself as a key driver for digital asset finance under a well-defined regulatory framework.
