Binance Partners with BBVA to Hold Trader Margin in U.S. Treasuries for Enhanced Trust and Safety

Binance has partnered with Spain's second-largest bank, BBVA, to hold client collateral off the exchange in the form of U.S. Treasuries. This move aims to rebuild trust after FTX's collapse and Binance's $4.3 billion U.S. penalty for anti-money-laundering failures. The partnership reduces exposure to operational risks and brings crypto trading margins closer to traditional derivatives markets.

Title: Binance Partners with BBVA to Hold Client Collateral in U.S. Treasuries

Binance, the world’s largest cryptocurrency exchange, has entered into a strategic partnership with BBVA, Spain’s second-largest bank by assets, to provide off-exchange asset custody services to its users. Under this arrangement, customer assets will be held by BBVA in U.S. Treasury securities, which Binance will use as collateral for trades. This move is intended to enhance transparency and security by separating the custody of user assets from the exchange platform, reducing counterparty risk and offering greater protection to investors [1].

This collaboration comes as Binance continues to navigate a period of regulatory scrutiny, including a $4.3 billion penalty in the U.S. for compliance violations in late 2023. The partnership with BBVA is seen as a strategic step to rebuild trust among users and align with regulatory expectations. By leveraging BBVA’s established banking infrastructure, Binance aims to ensure that customer funds are safeguarded against operational risks—lessons learned from the 2022 collapse of FTX, where inadequate fund management led to widespread losses [2].

BBVA, which secured authorization to provide retail crypto services in Spain in March 2025, is expanding its role in the digital asset market. The bank has already introduced Bitcoin and Ether trading for Spanish clients via its mobile app, reflecting a growing institutional confidence in crypto assets. In this partnership, BBVA acts as an independent custodian, offering a level of regulatory protection typically associated with traditional financial institutions. The separation of custody from trading functions is a critical measure in building institutional-grade trust, particularly in an environment where regulatory clarity is improving across the U.S. and Europe [3].

Binance previously introduced similar arrangements with other custodians like Sygnum and FlowBank. The latest agreement with BBVA is a continuation of that strategy, aimed at attracting both institutional and retail investors who prioritize security and compliance. The custody model is part of a broader industry trend where crypto exchanges are partnering with regulated banks to enhance transparency and meet evolving regulatory expectations [4].

This development also highlights the increasing integration of traditional finance with the crypto market. As more platforms adopt conventional financial practices, the crypto industry is gradually moving toward mainstream adoption and greater regulatory alignment. The Binance-BBVA partnership is expected to reassure investors by combining the strengths of a global crypto exchange with the regulatory safeguards of a traditional financial institution [5].

References:
[1] Binance Partners With BBVA to Offer Off-Exchange Asset Custody (https://www.binance.com/en/square/post/08-08-2025-binance-partners-with-bbva-to-offer-off-exchange-asset-custody-for-users-28034824551818)
[2] Binance Teams Up With BBVA to Let Customers Keep Assets Off Exchange (https://finance.yahoo.com/news/binance-teams-bbva-let-customers-044146810.html)
[3] Binance Partners BBVA to Let Customers Keep Crypto Off Exchange (https://www.finextra.com/newsarticle/46423/binance-partners-bbva-to-let-customers-keep-crypto-off-exchange---ft)
[4] Binance Links Up With BBVA to Keep Customer Funds Off-Exchange (https://crypto-economy.com/binance-links-up-with-bbva-to-keep-customer-funds-off-exchange/)
[5] Binance-BBVA Partnership and the Rise of Institutional-Grade Crypto Custody (https://www.ainvest.com/news/binance-bbva-partnership-rise-institutional-grade-crypto-custody-2508/)