Binance partners with BBVA for off-exchange custody to rebuild trust

Binance has partnered with Spanish bank BBVA to offer off-exchange asset custody, a development reported by Cryptonews and highlighted by industry observers as a step toward restoring trust following Binance’s $4.3 billion fine in 2023. Under the agreement, client funds will be held in U.S. Treasuries by BBVA, which will then accept these as trading margin on Binance’s platform. This arrangement is designed to mitigate counterparty risk and prevent a scenario similar to the 2022 collapse of FTX, where customer assets were trapped due to insufficient safeguards [1].

This partnership adds BBVA to a small group of independent custodians working with Binance, marking a broader trend of traditional financial institutions entering the crypto space. The move follows the rollout of clearer regulations in both the U.S. and the European Union, which have made it easier for banks to offer services related to digital assets [1]. BBVA’s reputation and brand strength are seen as key advantages in this partnership, with one source noting that the bank’s involvement makes due diligence for potential users “a box tick” [1].

Binance previously offered third-party custody solutions through partners such as Sygnum and FlowBank, but the BBVA deal represents a significant escalation in the company’s efforts to reassure users. Prior to these partnerships, Binance had primarily held client assets on its own platform or with Ceffu, a custodian that the U.S. authorities had criticized for its close ties to the exchange [1]. The new structure is intended to provide an additional layer of security and transparency.

BBVA itself has been expanding its crypto services, including launching Bitcoin and Ether trading and custody via its mobile app for Spanish customers. The bank has also advised its private banking clients to consider allocating up to 7% of their portfolios to cryptocurrencies, reflecting broader institutional interest in the asset class [1].

The timing of the partnership coincides with a period of heightened regulatory clarity and growing institutional interest in crypto. The Trump administration’s pro-crypto stance has further fueled optimism, with record Bitcoin prices and increased trading volumes reported in recent months. This has encouraged banks and other traditional financial players to deepen their engagement with digital assets [1].

Meanwhile, Binance continues to face legal challenges, including a $1.76 billion clawback lawsuit brought by the FTX bankruptcy trust. Binance co-founder and former CEO Changpeng Zhao (CZ) recently filed a motion to dismiss the case, arguing that the Delaware court lacks jurisdiction over him and that the allegations are legally unsupported [1].

The BBVA partnership is the latest in a series of strategic moves by Binance to strengthen its compliance framework and regain investor confidence. With the crypto industry still reeling from the fallout of past crises, such collaborations are seen as critical in establishing trust and ensuring long-term stability.

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[1] 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/)