BNY Partners With Finstreet and ADI Foundation on Digital Asset Custody in Abu Dhabi
BNY has entered into a partnership with Finstreet and the ADI Foundation to support a regulated digital asset custody initiative in Abu Dhabi, marking another step in the UAE’s expanding digital finance ecosystem. The collaboration will operate within the Abu Dhabi Global Market (ADGM) and initially focus on custody services for Bitcoin and Ethereum.
According to the announcement, the service will be made available to clients within Finstreet’s digital market ecosystem. Finstreet is a subsidiary of International Holding Company (IHC) through Sirius International Holding, while the ADI Foundation is an Abu Dhabi-based blockchain infrastructure organisation.
The partnership is expected to begin with support for the two largest cryptocurrencies by market capitalization before broadening to additional digital asset categories. The companies plan to expand custody capabilities to the ADI Foundation’s blockchain network, with future support intended for stablecoins, tokenised real-world assets, and other regulated digital instruments.
By combining BNY’s institutional custody expertise with local blockchain infrastructure in Abu Dhabi, the collaboration aims to provide UAE clients with a more localised platform for digital asset management. The companies said the initiative is designed to strengthen connections between traditional finance and digital asset markets.
Ajay Bhatia, Principal Council Member at the ADI Foundation, said the partnership represents “an important step in further cementing Abu Dhabi’s place as a global digital asset hub.”
Hani Kablawi, Executive Vice Chair at BNY, said the UAE is entering “a new phase of financial development,” pointing to deeper markets, greater digital sophistication, and stronger global connectivity. He added that BNY is focused on linking traditional and digital financial ecosystems.
The announcement comes shortly after IHC received approval from the Central Bank of the UAE to launch DDSC, a dirham-backed stablecoin intended for institutional payments and settlement. While separate from the new custody initiative, the development reflects continued momentum in the UAE’s digital asset and blockchain sector.
Industry Analysis
The partnership highlights the growing role of regulated digital asset infrastructure in the UAE, particularly in Abu Dhabi. As institutional players expand their presence in the market, custody solutions are becoming a key building block for broader adoption of digital assets, especially among clients seeking regulated and locally grounded services.
The planned expansion beyond Bitcoin and Ethereum toward stablecoins and tokenised real-world assets also signals how digital asset offerings are evolving. If implemented successfully, the initiative could support further integration between traditional custody models and blockchain-based financial products, reinforcing Abu Dhabi’s positioning as a regional hub for digital finance.
