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BNY-Figment Tie-Up to Enhance Digital Asset Custody & Staking
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Key Takeaways
BNY teams up with Figment to offer institutional staking services on its digital asset custody platform.
Ether will be the first supported asset, followed by Solana, expanding BNY's digital asset capabilities.
BNY's AUC/A reached $63.4 trillion, while nine-month 2026 fee revenues grew 11.2% year over year.
The Bank of New York Mellon Corporation (BNY - Free Report) is expanding its digital asset capabilities through a collaboration with blockchain infrastructure provider Figment to support staking on its Digital Asset Custody platform. The partnership will enable eligible institutional clients, including asset managers, ETF issuers, corporations and wealth management firms, to access staking services for supported digital assets held in BNY custody. Figment will provide the validator infrastructure, while BNY will continue to oversee custody and institutional servicing.
Ether is expected to be the first supported asset, followed by Solana. The collaboration marks another step in BNY's efforts to strengthen its digital asset platform and capitalize on growing institutional demand for blockchain-based financial services.
The partnership builds on BNY's broader strategy to provide institutional clients with infrastructure for both traditional and digital assets. Since launching its digital asset custody service in 2022, the company has been expanding its capabilities through strategic partnerships and new solutions. In June 2026, BNY deepened its collaboration with Circle Internet Group, further advancing its digital asset strategy and efforts to connect traditional financial infrastructure with emerging digital asset opportunities.
BNY's global market infrastructure and extensive institutional relationships provide a strong foundation for growth. As of Sept. 30, 2026, the company's assets under custody and/or administration (AUC/A) totaled $63.4 trillion, up 10% year over year.
Its fee-based business is also gaining momentum. Total fee revenues increased 11.2% year over year to $11.88 billion in the first nine months of 2026, driven by higher investment services fees, foreign exchange revenues and client activity. Adding staking services could further expand BNY's institutional offerings and create opportunities for incremental fee income growth.
Our Take on BNY
BNY's collaboration with Figment will likely strengthen its digital asset strategy with the addition of staking capabilities to its established custody platform. Its robust AUC/A base, expanding digital asset offerings and growing fee revenues provide opportunities to deepen institutional relationships and cross-sell additional services. However, the partnership's financial benefits will depend on institutional adoption, supported asset volumes and demand for staking.
Moreover, fee revenues account for more than 70% of BNY's total revenues, exposing its financial performance to fluctuations in client activity, market valuations and demand for financial services. Although recurring fees provide some stability, changing market conditions, trading activity, investment preferences and regulations could affect fee generation. Thus, while continued investment in digital assets could support long-term growth, concentration of fee revenue remains a key risk.
Over the past six months, shares of BNY have rallied 12.4% compared with the industry’s 10.5% growth.
Wells Fargo (WFC - Free Report) is expanding its digital-asset capabilities through blockchain-based financial services. In August 2026, the bank announced plans to introduce tokenized deposits for corporate and commercial clients, enabling 24/7 fund transfers, programmable payments and faster cross-border settlements. The solution will use smart contracts while retaining the regulatory protections and deposit insurance eligibility of traditional bank deposits.
Wells Fargo is also participating in a shared tokenized deposit network with JPMorgan Chase, Bank of America and Citigroup through The Clearing House to facilitate round-the-clock payments and real-time liquidity management. These initiatives are expected to strengthen Wells Fargo's treasury management capabilities, deepen corporate client relationships and create opportunities to expand its digital financial services.
Citigroup (C - Free Report) is also strengthening its digital-asset presence through blockchain-based solutions and tokenization initiatives. In June 2026, the bank launched Digital Depositary Receipts on private company shares, offering investors tokenized exposure to privately held businesses. The platform integrates issuance, custody and settlement, with Citigroup acting as issuer and custodian. Its first transaction involved Kaleido and investors from Citi's Wealth business, providing private companies with an alternative capital-raising route and shareholders with potential liquidity.
Additionally, Citigroup's Integrated Digital Assets Platform supports tokenized financial instruments, while Citi Token Services enables 24/7 transfers of tokenized deposits. These initiatives are expected to expand institutional services and create opportunities across custody, settlement and transaction banking.
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BNY-Figment Tie-Up to Enhance Digital Asset Custody & Staking
Key Takeaways
The Bank of New York Mellon Corporation (BNY - Free Report) is expanding its digital asset capabilities through a collaboration with blockchain infrastructure provider Figment to support staking on its Digital Asset Custody platform. The partnership will enable eligible institutional clients, including asset managers, ETF issuers, corporations and wealth management firms, to access staking services for supported digital assets held in BNY custody. Figment will provide the validator infrastructure, while BNY will continue to oversee custody and institutional servicing.
Ether is expected to be the first supported asset, followed by Solana. The collaboration marks another step in BNY's efforts to strengthen its digital asset platform and capitalize on growing institutional demand for blockchain-based financial services.
The partnership builds on BNY's broader strategy to provide institutional clients with infrastructure for both traditional and digital assets. Since launching its digital asset custody service in 2022, the company has been expanding its capabilities through strategic partnerships and new solutions. In June 2026, BNY deepened its collaboration with Circle Internet Group, further advancing its digital asset strategy and efforts to connect traditional financial infrastructure with emerging digital asset opportunities.
BNY's global market infrastructure and extensive institutional relationships provide a strong foundation for growth. As of Sept. 30, 2026, the company's assets under custody and/or administration (AUC/A) totaled $63.4 trillion, up 10% year over year.
Its fee-based business is also gaining momentum. Total fee revenues increased 11.2% year over year to $11.88 billion in the first nine months of 2026, driven by higher investment services fees, foreign exchange revenues and client activity. Adding staking services could further expand BNY's institutional offerings and create opportunities for incremental fee income growth.
Our Take on BNY
BNY's collaboration with Figment will likely strengthen its digital asset strategy with the addition of staking capabilities to its established custody platform. Its robust AUC/A base, expanding digital asset offerings and growing fee revenues provide opportunities to deepen institutional relationships and cross-sell additional services. However, the partnership's financial benefits will depend on institutional adoption, supported asset volumes and demand for staking.
Moreover, fee revenues account for more than 70% of BNY's total revenues, exposing its financial performance to fluctuations in client activity, market valuations and demand for financial services. Although recurring fees provide some stability, changing market conditions, trading activity, investment preferences and regulations could affect fee generation. Thus, while continued investment in digital assets could support long-term growth, concentration of fee revenue remains a key risk.
Over the past six months, shares of BNY have rallied 12.4% compared with the industry’s 10.5% growth.
6-Month Price Performance
Image Source: Zacks Investment Research
BNY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Digital Assets Expansion by Other Banks
Wells Fargo (WFC - Free Report) is expanding its digital-asset capabilities through blockchain-based financial services. In August 2026, the bank announced plans to introduce tokenized deposits for corporate and commercial clients, enabling 24/7 fund transfers, programmable payments and faster cross-border settlements. The solution will use smart contracts while retaining the regulatory protections and deposit insurance eligibility of traditional bank deposits.
Wells Fargo is also participating in a shared tokenized deposit network with JPMorgan Chase, Bank of America and Citigroup through The Clearing House to facilitate round-the-clock payments and real-time liquidity management. These initiatives are expected to strengthen Wells Fargo's treasury management capabilities, deepen corporate client relationships and create opportunities to expand its digital financial services.
Citigroup (C - Free Report) is also strengthening its digital-asset presence through blockchain-based solutions and tokenization initiatives. In June 2026, the bank launched Digital Depositary Receipts on private company shares, offering investors tokenized exposure to privately held businesses. The platform integrates issuance, custody and settlement, with Citigroup acting as issuer and custodian. Its first transaction involved Kaleido and investors from Citi's Wealth business, providing private companies with an alternative capital-raising route and shareholders with potential liquidity.
Additionally, Citigroup's Integrated Digital Assets Platform supports tokenized financial instruments, while Citi Token Services enables 24/7 transfers of tokenized deposits. These initiatives are expected to expand institutional services and create opportunities across custody, settlement and transaction banking.