Digital Assets
Infrastructure connecting traditional and digital ecosystems.
Why the custodian behind your staking matters as much as the rewards it generates.
Key Takeaways
- Staking is about more than rewards. Institutional investors need to consider the custody, oversight and operational framework supporting those rewards.
- Staking introduces new operational dependencies. Validator infrastructure, reward settings, access controls and incident response can affect staking operations even when underlying custody controls remain intact.
- Clear accountability matters. Institutions should understand who safeguards their assets, oversees staking providers and takes responsibility when operations are tested.
- BNY combines institutional oversight with blockchain expertise. Client assets remain within BNY’s custody framework, while Galaxy and Figment provide validator infrastructure under BNY oversight.
- BNY brings institutional-grade custody to staking. As the first U.S. G-SIB to offer Digital Asset Custody, BNY extends its established security, risk management, operational resilience and third-party oversight framework to staking.
Staking may begin with the opportunity to earn rewards, but for institutional investors, that is only part of the decision. The more important question is who is responsible for protecting the assets, overseeing the providers and keeping the operating model resilient when conditions are tested.
Safeguarding private keys remains fundamental. But staking introduces additional dependencies, including validator infrastructure, reward payment settings, access controls and incident response. A disruption in any of these areas can affect staking operations even when the underlying custody controls remain intact. That makes clear accountability across the entire model essential.
BNY brings the security, risk management, operational resilience and third-party oversight associated with its institutional custody platform to staking. As the first U.S. G-SIB to offer Digital Asset Custody, BNY provides clients with an established framework that includes segregated wallets, operational controls and robust oversight.
BNY’s staking model builds on those foundations. Client assets remain within BNY’s custody framework, while Galaxy and Figment provide validator infrastructure under bank oversight. The result brings together blockchain expertise with the accountability institutions expect from a global custodian.
Expected rewards will always matter. But institutions should also consider what sits behind those rewards: who safeguards the assets, oversees the providers and takes responsibility when operations are tested. That is where the institution behind the staking model makes the difference.
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