Binance Partners With BBVA to Offer Off-Exchange Custody for Digital Assets

Binance is collaborating with BBVA, one of Spain’s largest banking institutions, to allow customers to hold digital assets off the exchange. The partnership aims to provide enhanced security and institutional-grade custody solutions, addressing growing demand for more secure and regulated asset management in the crypto space [1]. The arrangement reportedly sees BBVA acting as an independent custodian for Binance clients, offering an alternative to traditional on-chain or exchange-based storage [2].

The Financial Times reported that BBVA has recently taken on a role as one of a few independent custodians for Binance clients, according to individuals familiar with the arrangement [4]. The move is designed to reassure investors following Binance’s record $4 billion fine by U.S. authorities in November 2023 for alleged money laundering, fraud, and sanctions violations. The FTX collapse in 2022 also left many traders wary of keeping assets on crypto exchanges [4].

The BBVA custody setup keeps traders' funds in U.S. Treasuries at the bank, which Binance then accepts as trading margin [4]. This creates a barrier between trading and custody, a standard practice in traditional finance but not common in crypto. One source noted that BBVA carries greater “name recognition” than Binance’s current custodial partners, adding credibility to the due diligence process for institutional clients [4].

Binance began allowing larger clients to hold assets at independent custodians like Sygnum and FlowBank in January 2024 to reduce counterparty risk [4]. Previously, users were restricted to keeping their assets on the exchange or via Ceffu, a custody partner criticized by the SEC as a “rebranded Binance entity.”

BBVA has been expanding its crypto activity in recent months, having launched bitcoin and ether trading and custody services in July 2024 [4]. The bank has also advised its wealth clients to invest 3% to 7% of their portfolios in cryptocurrencies, signaling growing institutional acceptance of digital assets [4].

This collaboration reflects a broader industry trend as crypto platforms increasingly seek partnerships with traditional financial institutions to meet regulatory expectations and improve asset protection for users [3]. Binance is not the only platform pursuing such solutions; Deribit, OKX, and Bitget have also introduced off-exchange custody options in recent years [4].

By enabling off-exchange custody, Binance is positioning itself to attract more institutional clients who prioritize security and regulatory alignment [5]. The partnership also underscores BBVA’s expanding presence in the crypto sector, following recent ventures into digital asset infrastructure and regulated stablecoins [6].

Analysts suggest that such initiatives may signal a broader shift in how crypto assets are managed, with more emphasis on custody solutions offered by trusted financial institutions [7]. The collaboration highlights the growing convergence between traditional finance and the crypto ecosystem, particularly as regulatory frameworks like the EU’s MiCA and the Trump administration’s pro-crypto stance gain traction [4].

Binance has not disclosed further details on the scope or timeline for the service’s rollout, but the initiative is seen as a strategic move to strengthen trust and institutional adoption in an increasingly regulated market [1].

Sources:

[1] Binance. (2025, July 28). Binance Partners With BBVA to Offer Off-Exchange Asset Custody. https://www.binance.com/en/square/post/28034824551818

[2] Mitrade. (2025, August 5). Binance and BBVA Have Partnered to Allow Clients to Hold Digital Assets Off the Crypto Exchange. https://www.mitrade.com/au/insights/news/live-news/article-3-1023710-20250808

[3] Σύνδεσμος. (2025, August 5). Binance Teams Up with BBVA to Let Customers Keep Assets Off the Crypto Exchange, FT Reports. https://www.sepe.gr/en/it-technology/22613595/binance-teams-up-with-bbva-to-let-customers-keep-assets-off-exchange-ft-reports/

[4] Financial. (2025, July 27). Binance is Working with Spanish Bank BBVA to Allow Customers to Hold Their Assets Off the Crypto Exchange. https://www.ft.com/content/7b7ff1f9-ed7b-432d-aeb7-bc4e52acf97a

[5] TS2. (2025, August 7). Tech Turmoil: Courts Hacked, Space IPO Soars & Binance Partners With Spain's BBVA. https://ts2.tech/en/tech-turmoil-courts-hacked-space-ipo-soars-tech-titans-tussle-global-roundup-aug-7-8-2025/

[6] Yahoo. (2025, July 16). Binance Teams Up with BBVA to Let Customers Keep Assets Off Exchange, FT Reports. https://finance.yahoo.com/news/heres-1-million-solana-5-111500687.html

[7] Financial. (2025, June 12). Binance Teams Up with BBVA to Let Customers Keep Assets Off Exchange. https://www.ft.com/