Binance partners BBVA to custody crypto in U.S. Treasuries

Binance, the world’s largest cryptocurrency exchange, has announced a partnership with BBVA, Spain’s third-largest bank, to offer enhanced crypto custody solutions for its users. This collaboration enables customers to store their digital assets with BBVA, rather than directly on Binance’s platform, reducing counterparty risk and improving the security of their holdings [1]. Under the arrangement, BBVA will hold client funds in the form of U.S. Treasuries, which Binance will then accept as collateral for trading on its platform [2].

This move is part of a broader strategy by Binance to improve trust and regulatory compliance, particularly in the wake of the FTX collapse in 2022, where billions of dollars in customer funds were mismanaged. Binance has previously worked with Swiss banks such as Sygnum and FlowBank to develop independent custody solutions, but the partnership with BBVA brings a stronger institutional reputation [2]. BBVA’s established credibility in asset custody and its recent expansion into digital assets—such as offering Bitcoin and Ether trading through its mobile app for Spanish clients—positions it as a strategic partner for Binance [4].

The collaboration also aligns with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which aim to promote transparency and oversight in the crypto industry. BBVA’s involvement suggests the custody framework meets the standards expected by regulators and institutional investors [1]. In March 2025, BBVA received regulatory approval from Spain’s CNMV to trade in crypto assets, and it has since begun offering crypto services to a limited group of customers, with plans to expand to a wider retail audience [4].

In addition to the custody partnership, Binance has introduced a new feature for European users, allowing them to convert cryptocurrency into fiat and withdraw directly to a Mastercard account in near real-time. This functionality improves liquidity and user experience, further supporting the platform’s efforts to appeal to a broader audience [5].

The timing of this announcement is significant, as Binance continues to recover from a $4.3 billion fine imposed by U.S. regulators in late 2023. Analysts suggest that the collaboration with BBVA reflects a growing trend of crypto firms aligning with traditional financial institutions to strengthen compliance, reduce operational risks, and restore investor confidence [6]. As the global digital asset market is expected to grow at a 25% compound annual rate over the next five years, the demand for secure, transparent custody solutions is likely to increase [5].

By working with a trusted and licensed bank, Binance is signaling its commitment to building a more institutional-grade infrastructure. This partnership could serve as a model for other exchanges seeking to enhance security and regulatory alignment in a maturing market [5].

Source:

[1] Binance partners BBVA to let customers keep crypto off exchange – FT

https://www.finextra.com/newsarticle/46423/binance-partners-bbva-to-let-customers-keep-crypto-off-exchange---ft

[2] Binance teams up with banking giant BBVA to let clients store crypto assets in U.S. Treasuries

https://cryptobriefing.com/binance-bbva-custody-partnership/

[3] Traditional banks embrace digital assets as new partnerships seek to restore trust following industry setbacks and tightening regulations

[4] BBVA to Custody Binance Client Assets in U.S. Treasuries

https://www.ainvest.com/news/bbva-custody-binance-client-assets-treasuries-2508/

[5] Binance Boosts Trust with New BBVA Custody Deal

https://coinpaper.com/10426/binance-boosts-trust-with-new-bbva-custody-deal

[6] Binance and BBVA Reshape the Terrain of Crypto Custody

https://cryptorobotics.ai/news/news-report/binance-bbva-crypto-custody-solutions/