Binance Collaborates with BBVA to Offer Off-Exchange Crypto Custody

Binance, the world's largest cryptocurrency exchange by trading volume, has reportedly partnered with BBVA, Spain’s third-largest bank, to enable clients to hold digital assets outside the exchange environment. This collaboration allows users to store their crypto holdings in an independent custodial setup, leveraging BBVA’s financial infrastructure, including the use of U.S. Treasuries as collateral for trading purposes. The move comes after Binance launched its “Banking Triparty” custody solution, aiming to offer institutional-grade security and diversification for its clients. Neither Binance nor BBVA has officially confirmed the details of the partnership, though reports suggest BBVA is among a small group of regulated custodians for the exchange [1].

The arrangement is believed to be part of Binance’s strategy to build trust among institutional and high-net-worth clients, particularly in a post-FTX environment where security and regulatory compliance have become paramount. By allowing clients to tokenize real-world assets and use them as off-exchange collateral, Binance is attempting to optimize capital efficiency while reducing counterparty risks typically associated with on-chain exchange custody. Philippe Meyer, Head of Digital & Blockchain Solutions at BBVA Switzerland, indicated that the bank had already begun advising select clients to allocate up to 7% of their portfolios to crypto, depending on their risk appetite [2].

BBVA has been expanding its presence in the crypto space since 2021, when it launched its Digital Assets service in Switzerland. The offering later expanded to Turkey in 2023, where its Garanti BBVA branch now supports trading in major cryptocurrencies such as Bitcoin and Ether. BBVA executives have emphasized the bank’s long-term commitment to digital assets, highlighting efforts to provide seamless integration between crypto and traditional banking services. The bank’s retail customers in Spain are already able to access crypto via mobile banking apps, with plans to further streamline the process for everyday users [3].

The partnership underscores a broader trend in the crypto industry, where exchanges are increasingly seeking integration with traditional financial institutions to build credibility and regulatory acceptance. BBVA’s entry into the custody sector is seen as a strategic move to attract institutional clients and demonstrate a commitment to risk mitigation and compliance. With recent regulatory developments in the EU and the U.S. providing a clearer legal framework, BBVA and Binance appear to be positioning themselves for long-term stability in the crypto ecosystem [4].

Analysts have noted that such partnerships are critical for exchanges aiming to avoid the pitfalls of unregulated custodial practices that have led to major collapses in the past. Binance’s 2023 $4.3 billion regulatory fine highlighted the need for stronger oversight and transparency, and this collaboration with BBVA is one step toward fulfilling those requirements. However, the lack of official statements from either party leaves some questions about the exact scope and operational structure of the custodial framework [5].

As the crypto sector continues to evolve, the integration of traditional banking services with digital assets is likely to become more widespread. BBVA’s experience in digital asset management and Binance’s global trading dominance position them as key players in this transition. The collaboration not only addresses current regulatory concerns but also sets a precedent for how crypto exchanges can leverage traditional financial infrastructure to enhance security and user confidence [6].

Sources:

[1] Financial, https://www.ft.com/content/b1f596c8-f823-42b9-b634-d0f749a3ccca

[2] AInvest, https://www.ainvest.com/news/binance-partners-bbva-exchange-custody-rebuild-trust-2508/

[3] The, https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/123173392.cms

[4] AInvest, https://www.ainvest.com/news/binance-bbva-era-crypto-custody-institutional-trust-2508/

[5] breakingthenews.net, https://breakingthenews.net/Article/BBVA-to-hold-Binance-client-funds-in-US-Treasuries/64616055

[6] Crypto, https://crypto.news/binance-grants-spanish-bank-bbva-crypto-custody-rights-to-prevent-ftx-2-0-report/