The world’s largest custodian BNY plans to provide digital asset custody in the Abu Dhabi Global Market (ADGM) as part of a collaboration with Finstreet and the ADI Foundation. Finstreet operates a multilateral trading facility (MTF) and clearing house and is a subsidiary of IHC, the large conglomerate controlled by the ruling royal family. ADI is a layer two blockchain which was also founded by Sirius International, an IHC subsidiary.
Subject to definitive agreements and regulatory approval, BNY will initially provide custody for bitcoin and ether tokens acquired by clients of Finstreet, with a view to later expanding to stablecoins and tokenized real world assets as well as the ADI blockchain. Ajay Bhatia, Principal Council Member at ADI Foundation, said that ADI’s “institutional-grade digital infrastructure will unlock new opportunities in custody, trade finance, and lending from Abu Dhabi to the world.”
The ADI blockchain only went live in December, and perhaps the biggest initiative so far has been the launch of the central bank regulated stablecoin DDSC in February, with First Abu Dhabi Bank as a key partner. Like most new stablecoins, initial uptake has been modest. DDSC has a market capitalization of Dirham 117 million ($32m), with 94% deposited in a single wallet three weeks ago.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.