Global custodian bank BNY is partnering with Abu Dhabi-based firms Finstreet and ADI Foundation to introduce institutional digital asset custody infrastructure in the UAE, as the Middle East Gulf targets seeks to attract new business in regulated blockchain finance.
BNY Joins Abu Dhabi Push To Build Global Hub for Institutional Digital Assets
8 May 2026 - 11:01 CEST
By Sandmark staff
The collaboration will initially focus on custody support for Bitcoin and Ether through Abu Dhabi Global Market (ADGM), with plans to later expand into stablecoins, tokenized real-world assets and other regulated digital instruments.
The move brings together BNY with Finstreet's digital market infrastructure and ADI Foundation's sovereign-grade blockchain rails anchored in Abu Dhabi.
Building the rails
The announcement goes beyond a standard crypto custody partnership. The companies framed the initiative as part of a broader effort to build localised financial infrastructure for tokenized markets in Abu Dhabi.
"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.
BNY executive vice chair Hani Kablawi said the UAE was entering "a new phase of financial development" driven by digital finance and deeper global connectivity.
The initiative also ties into the UAE's growing stablecoin and tokenization ambitions. ADI Foundation said its infrastructure supports ADI Chain, described as the region's first institutional Layer-2 blockchain for stablecoins and real-world assets.
The announcement follows the start of DDSC, a dirham-backed stablecoin initiative backed by IHC and First Abu Dhabi Bank.
Abu Dhabi's institutional bet
The partnership adds to signs that Abu Dhabi is evolving from a crypto-friendly jurisdiction into a serious venue for institutional digital finance infrastructure.
ADGM has spent the past year expanding its digital asset framework, including rules around stablecoins and staking aimed at institutional participation. The financial centre said in March that assets under management in its jurisdiction rose 36% in 2025 while active licences surpassed 12,600.
The BNY move also aligns with the bank's broader push into tokenized finance and blockchain-based settlement systems. Earlier this year, BNY promoted tokenized deposits as a foundation for "always-on finance" as major global banks increasingly compete to modernise financial infrastructure.
