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BNY to let custody clients earn staking rewards through Figment

Why it matters

Fund managers and ETF issuers will be able to earn a return on coins without moving them out of a major bank. That removes one reason to use a crypto-native custodian instead.

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The short version

On 12 November, US bank BNY said clients who keep crypto with it will be able to earn rewards by putting their coins to work helping run the networks behind them, through a firm called Figment. Ether comes first, then solana. Figment says it works with more than 1,500 institutions. No start date was given.

Here's what happened. BNY will offer staking to clients of its digital asset custody service, using validator infrastructure from Figment, The Block reported on 12 November.

Staking means locking up coins to help run a blockchain, in return for rewards. A validator is the computer setup that does that work. Clients keep their coins with BNY, the bank that holds them, while Figment handles the technical side.

Eligible asset managers, ETF issuers, companies and wealth managers can take part. A Figment spokesperson told The Block that ether will be supported first, followed by solana. No launch date was given.

Figment says it already works with 1,500+ institutions, including asset managers, custodians, exchanges and wallets.

Put it in context. BNY began holding bitcoin and ether for selected clients in October 2022. In October this year it widened its custody deal with Ripple to cover XRP and the RLUSD stablecoin, according to The Block.

Where this comes from

  1. BNY taps Figment to support staking on its digital asset custody platform · The Block

Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.

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