Binance partners with BBVA for off-exchange crypto custody post-FTX crisis

Binance has announced a strategic partnership with BBVA, one of Spain’s largest financial institutions, to offer off-exchange crypto custody services for its users [1]. This collaboration enables Binance clients to store their digital assets in BBVA’s regulated accounts, adding a layer of security typically associated with traditional banking systems [2]. The move is widely seen as a response to growing concerns over digital asset safety, particularly in the aftermath of high-profile exchange failures such as FTX [3].

Under the terms of the partnership, BBVA will hold user assets in U.S. Treasury-backed accounts, which Binance can then use as trading margin [4]. This structure ensures that customer funds remain segregated from the exchange’s operational capital, significantly reducing counterparty risk [5]. The initiative is expected to attract more institutional investors, who are increasingly cautious about the risks associated with digital asset storage and management [6].

The Binance-BBVA collaboration also highlights a broader trend of integration between traditional finance and the crypto sector. BBVA, which has already introduced app-based crypto trading and custody services, has advised some clients to allocate up to 7% of their portfolios in Bitcoin and Ethereum [7]. By partnering with Binance, the bank is reinforcing its position as a bridge between traditional and digital asset markets [8].

This development comes as Binance continues to enhance its regulatory compliance and user trust. The exchange recently launched a new feature that allows European users to convert cryptocurrencies to fiat and withdraw funds directly to Mastercard accounts [9]. These measures collectively underscore Binance’s strategy to align with global regulatory expectations and provide a more secure and transparent trading environment [10].

The partnership is also notable for its timing, occurring against a backdrop of increased scrutiny and volatility in the crypto market. Binance’s decision to adopt third-party custody services reflects a shift in how centralized exchanges manage digital assets. Previously, Binance held all user funds on its platform, but this new model introduces a level of financial oversight and accountability that was lacking in earlier practices [11].

Industry observers have pointed out that the FTX collapse in 2022 exposed significant vulnerabilities in crypto custody practices. The inability of users to access their funds during that period, including a reported $175 million from Genesis Trading, led to a loss of trust in centralized exchanges [12]. Binance’s move with BBVA is seen as a step toward rebuilding that trust and reinforcing the credibility of the crypto space [13].

In addition to BBVA, Binance has also partnered with Swiss institutions like Sygnum and FlowBank for independent custody solutions. This multi-bank approach underscores Binance’s commitment to diversifying risk and ensuring that customer assets are held in multiple, regulated environments [14]. Such measures could set a new standard for the industry and encourage other exchanges to adopt similar security protocols [15].

Sources:

[1] Binance. "Binance Partners With BBVA to Offer Off-Exchange Asset Custody for Users." [https://www.binance.com/en/square/post/08-08-2025-binance-partners-with-bbva-to-offer-off-exchange-asset-custody-for-users-28034824551818](https://www.binance.com/en/square/post/08-08-2025-binance-partners-with-bbva-to-offer-off-exchange-asset-custody-for-users-28034824551818)

[2] TheBanker.com. "Binance partners with BBVA for crypto custody, say reports." [https://www.thebanker.com/content/b9426d60-459a-4fab-9a3e-f7277f8e355d](https://www.thebanker.com/content/b9426d60-459a-4fab-9a3e-f7277f8e355d)

[3] BanklessTimes. "Binance Partners With BBVA To Enable Clients To Store Crypto Off Exchange." [https://www.banklesstimes.com/articles/2025/08/08/binance-partners-with-bbva-to-enable-clients-to-store-crypto-off-exchange/](https://www.banklesstimes.com/articles/2025/08/08/binance-partners-with-bbva-to-enable-clients-to-store-crypto-off-exchange/)

[4] BeInCrypto. "Binance and BBVA Join Forces to Enhance Crypto Security." [https://beincrypto.com/binance-bbva-crypto-custody-spain/](https://beincrypto.com/binance-bbva-crypto-custody-spain/)

[5] advfn.com. "BTCUSD - Binance taps Spain's BBVA to offer safer crypto custody." [https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96596021/binance-taps-spain-s-bbva-to-offer-safer-crypto-c](https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96596021/binance-taps-spain-s-bbva-to-offer-safer-crypto-c)

[6] AInvest. "Binance partners with BBVA for secure crypto custody post-FTX crash." [https://www.ainvest.com/news/binance-partners-bbva-secure-crypto-custody-post-ftx-crash-2508/](https://www.ainvest.com/news/binance-partners-bbva-secure-crypto-custody-post-ftx-crash-2508/)

[7] Tech. "Binance said to team up with Spanish finance group for custody." [https://www.techinasia.com/news/binance-said-to-team-up-with-spanish-finance-group-for-custody](https://www.techinasia.com/news/binance-said-to-team-up-with-spanish-finance-group-for-custody)

[8] Cryptonews. "Binance Partners with Spanish Bank BBVA to Offer Off-Exchange Asset Custody." [https://cryptonews.com/news/binance-partners-with-spanish-bank-bbva-to-offer-off-exchange-asset-custody/](https://cryptonews.com/news/binance-partners-with-spanish-bank-bbva-to-offer-off-exchange-asset-custody/)

[9] AInvest. "Binance and BBVA: A New Era in Crypto Custody and Institutional Trust." [https://www.ainvest.com/news/binance-bbva-era-crypto-custody-institutional-trust-2508/](https://www.ainvest.com/news/binance-bbva-era-crypto-custody-institutional-trust-2508/)

[10] The Economic Times. "Monero Faces Breakdown Amid Oversold Conditions." [https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/123173392.cms](https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/123173392.cms)

[11] CoinMarketCap. "Binance Boosts Trust with New BBVA Custody Deal." [https://coinmarketcap.com/community/articles/6895f5f1e21b950c870dd31b/](https://coinmarketcap.com/community/articles/6895f5f1e21b950c870dd31b/)