BNY Mellon partners with Figment for institutional crypto staking

The banking giant BNY Mellon has officially announced a new partnership with Figment to incorporate staking services into its digital asset custody infrastructure. This move signals a significant shift in how traditional financial institutions approach the growing market for blockchain yield. By adding Figment as a service provider, the bank aims to allow institutional clients to participate in network validation without moving assets out of their secure custodial environment.

Institutional investors have historically been hesitant to engage with staking protocols due to technical complexities and the risks associated with third party custody. By working with Figment, BNY Mellon intends to simplify the process while maintaining the strict security standards required for large capital portfolios. This integration suggests that the bank is positioning itself to capture a larger share of the market as more pension funds and asset managers look for ways to earn returns on their crypto holdings.

Currently, the infrastructure will focus on proof of stake networks, with Ethereum being the primary asset expected to benefit from this rollout. Clients will be able to delegate their tokens to validators while keeping their private keys under the bank’s protection. This model addresses the core concern of counterparty risk, which has been a major barrier for institutional entry into the market throughout 2026.

As regulatory frameworks continue to stabilize, banks are finding it increasingly necessary to offer more than just storage solutions. By providing a direct path to staking rewards, BNY Mellon is effectively turning static digital assets into interest bearing accounts. This development could set a precedent for other global custodians to follow, further legitimizing the role of staking in professional wealth management.

Industry observers note that the collaboration focuses on the high security standards needed to satisfy internal risk committees. Figment brings years of operational experience in managing validator nodes and securing network infrastructure. For traders, this development confirms that major financial players are committed to long term participation in the crypto ecosystem. Expect to see more competition in the custody sector as providers race to offer integrated yield services for their clients.