Ondo, JPMorgan, Mastercard and Ripple completed a tokenized Treasury settlement on the XRP Ledger in under 5 seconds.
BNY has announced a partnership with Abu Dhabi-based Finstreet and ADI Foundation to develop regulated digital asset custody services for institutional clients in the United Arab Emirates. The initiative, disclosed Thursday, will initially cover Bitcoin and Ethereum custody for Finstreet's existing client base before expanding to ADI Foundation's blockchain infrastructure.
The three firms plan to operate from the Abu Dhabi Global Market (ADGM), an international financial center and free zone located on Al Maryah Island. BNY has described itself as the first US global systemically important bank to offer digital asset custody services. The arrangement remains subject to definitive agreements and regulatory approvals.
Hani Kablawi, executive vice chair at BNY, said the bank is "uniquely positioned to connect traditional and digital financial ecosystems." The partnership is designed to eventually cover stablecoins, tokenized real-world assets, and other regulated digital instruments, though no timeline has been provided for those expansions.
Finstreet is a subsidiary of Sirius International Holding, which is backed by UAE conglomerate IHC. IHC is among the institutions that launched DDSC, a dirham-backed stablecoin regulated by the UAE central bank, which runs on ADI Chain, an institutional layer-2 blockchain built by ADI Foundation.
ADI Chain signed memoranda of understanding in 2025 with BlackRock, Mastercard, and Franklin Templeton, covering tokenized asset settlement and digital financial infrastructure. A Shariah-compliant stablecoin called PUSD, backed by reserves in Saudi riyals and UAE dirhams, is also expected to launch on ADI Chain.
The BNY announcement coincides with a separate initiative from Abu Dhabi-based stablecoin issuers AE Coin and USD Universal, who are developing a regulated conversion rail for near-instant exchange between the dirham-pegged AE Coin and the US dollar-backed USDU. That system runs on Al Maryah Community Bank infrastructure and will initially be accessible through Aquanow and Changer(dot)ae.
The UAE has accelerated its digital asset regulatory buildout in recent years, licensing firms such as Animoca Brands and BitGo and introducing frameworks for tokenized stocks, ETFs, and crypto derivatives. The BNY partnership adds one of the world's largest custodians to that growing institutional footprint in Abu Dhabi.
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