Binance partners with BBVA for independent crypto custody

Binance has partnered with BBVA to serve as an independent custodian for customer funds, aimed at rebuilding trust in centralised cryptocurrency platforms. Under the deal, Binance users can store assets with BBVA, backed by bank-held collateral. Customer funds held with BBVA are kept in US Treasuries, which Binance can use as margin for trading on its platform, lowering counterparty risk. This move adds an extra layer of protection and addresses concerns about frozen funds and asset management.

Binance, the world's largest cryptocurrency exchange, has announced a strategic partnership with BBVA, Spain's second-largest bank, to offer off-exchange crypto custody services. This collaboration, set to commence on August 10, 2025, aims to enhance security and trust among users by storing digital assets with BBVA instead of directly on the exchange [1].

Under the deal, Binance users can store their assets with BBVA, which will hold them as collateral. Customer funds held with BBVA are kept in U.S. Treasuries, which Binance can use as margin for trading on its platform, potentially lowering counterparty risk [2]. This move adds an extra layer of protection, addressing concerns about frozen funds and asset management.

The partnership addresses regulatory scrutiny and past custodial failures, aligning with BBVA's expanding crypto services. Binance CEO Richard Teng emphasized the initiative’s goal of providing a “safer way to store and manage crypto assets,” according to a report by the Financial Times [3]. By utilizing BBVA's institutional-grade infrastructure and regulatory approvals, the collaboration addresses key concerns around transparency, compliance, and fund separation [4].

BBVA, which obtained the necessary approvals in March 2025 to offer retail crypto services in Spain, has been expanding its digital asset offerings, including Bitcoin and Ether trading through its mobile app [5]. This partnership with Binance further solidifies its position in the growing crypto market. The move also builds on Binance’s previous efforts to increase trust, such as enabling third-party custodians like Sygnum and FlowBank [6].

The new custody model is expected to appeal to institutional and retail investors seeking greater assurance in the security of their digital holdings. Market reactions to the announcement have been stable, with minimal price disruptions observed for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), indicating broad investor confidence in the move [7]. The partnership aligns with a broader trend of traditional financial institutions adapting to the crypto sector, particularly in light of regulatory enforcement actions against platforms for compliance lapses. Binance itself settled a 2023 case with U.S. regulators over anti-money laundering violations, underscoring the importance of improved asset management practices [8].

By integrating U.S. Treasuries into its custody framework, Binance aims to bridge the gap between traditional finance and digital assets, potentially attracting a wider range of investors who may have been wary of the volatility and risks associated with crypto. The initiative signals a strategic evolution for Binance as it seeks to reinforce its position in a more regulated and competitive market landscape.

References:
[1] https://cointelegraph.com/news/binance-bbva-crypto-custody-partnership
[2] https://www.finextra.com/newsarticle/46423/binance-partners-bbva-to-let-customers-keep-crypto-off-exchange---ft
[3] https://cryptobriefing.com/binance-bbva-custody-partnership/
[4] https://www.coindesk.com/business/2025/08/08/spanish-bank-bbva-said-to-offer-off-exchange-custody-to-binance-customers-ft
[5] https://www.ainvest.com/news/binance-partners-bbva-hold-trader-margin-treasuries-enhanced-trust-safety-2508/
[6] https://www.binance.com/en/square/post/08-08-2025-binance-partners-with-bbva-to-offer-off-exchange-asset-custody-for-users-28034824551818
[7] https://dexalot.com/en/blog/binance-bbva-crypto-custody-innovation
[8] https://www.mitrade.com/insights/news/live-news/article-3-1023710-20250808