American financial giant BNY has entered into a major partnership in the United Arab Emirates to offer digital asset custody services, joining forces with Abu Dhabi-based Finstreet and ADI Foundation. According to the announcement, BNY will initially roll out these services for institutional clients focusing on Bitcoin and Ether, with plans to expand into stablecoins, tokenized real-world assets, and other regulated digital instruments in the future.
Institutional focus and Abu Dhabi Global Market
BNY stands among the world’s leading custodians and is accelerating its initiatives to bridge traditional finance with the digital asset sector. The starting point for the planned services will be Finstreet’s current portfolio of institutional clients, with ADI Foundation’s blockchain-powered infrastructure expected to be integrated down the line.
The digital asset custody operations will be managed under the Abu Dhabi Global Market (ADGM), the emirate’s financial center. The continuation of this venture will depend both on final contracts and regulatory approval from local authorities.
Hani Kablawi, BNY Vice Chair, emphasized the bank’s capacity to create a bridge between traditional and digital financial ecosystems. BNY also underlined that it was the first major American bank to offer digital asset custody at a global scale.
Roles of Finstreet and ADI Foundation
Finstreet, operating in the fintech sector as a subsidiary of Sirius International Holding—owned by UAE investment leader IHC—recently participated in the central bank-licensed DDSC stablecoin project, pegged to the dirham. This stablecoin runs on the blockchain-based ADI Chain, developed by ADI Foundation.
Meanwhile, a new stablecoin called PUSD, compliant with Sharia, and backed by reserves in Saudi riyals and UAE dirhams, is expected to launch on the ADI Chain platform soon.
ADI Foundation has also secured a series of collaborations to advance tokenized asset exchanges and digital finance infrastructure. Starting in 2025, it will join forces with leading financial names such as BlackRock, Mastercard, and Franklin Templeton, further positioning itself at the center of global innovation in corporate payments and digital asset instruments.
Regulatory landscape and new initiatives
The United Arab Emirates has developed a robust regulatory framework for digital assets and tokenization infrastructure in recent years. As a result, major international players like Animoca Brands, BitGo, and Binance have received licenses to operate in the country. The latest regulatory updates now encompass tokenized stocks, exchange-traded funds, and crypto derivatives.
Simultaneously, AE Coin and USD Universal announced a regulated conversion platform, facilitating swift and secure swaps between the UAE dirham-pegged AE Coin and US dollar-backed USDU stablecoin. This platform, aimed at institutional payments and liquidity management, will initially be delivered through Al Maryah Community Bank infrastructure and partners Aquanow and Changer.ae, both of which are licensed digital asset service providers.
