Binance partners with BBVA to offer off-platform crypto asset custody

Binance, the world’s largest cryptocurrency exchange, has entered into a partnership with BBVA, one of Spain’s leading banks, to allow users to store their digital assets off the platform [1]. The collaboration, first reported by the Financial Times, represents a strategic shift for Binance, which previously held all customer assets on its platform or through its subsidiary, Ceffu [2]. This new arrangement aims to address investor concerns over security, particularly in the wake of the 2022 FTX collapse.

Under the partnership, BBVA will serve as an independent custodian, holding investor assets in the form of US Treasury bonds. These assets will be accepted by Binance as collateral for trading purposes, effectively reducing the risk of exchange-specific asset exposure [2]. This move is part of a broader strategy by Binance to diversify its custodial arrangements, having already opened the door to alternatives like Sygnum Bank and FlowBank for large clients [1]. The partnership with BBVA is one of only a few such arrangements, highlighting the exchange’s careful selection of trusted financial partners.

BBVA’s expansion into the crypto space has been accelerating. The bank recently launched Bitcoin and Ethereum trading and custody services for its Spanish clients through its mobile app. Additionally, it has advised its private banking clients to consider allocating up to 7% of their portfolios to crypto assets, though it clarifies that this is not formal investment advice [1]. The bank’s interest in the space is driven by growing retail demand and a shift in market expectations, particularly in regions like Türkiye, where BBVA also operates [3].

The partnership is also aligned with BBVA’s broader institutional custody strategy. Reports indicate that its in-house key custody platform is being integrated with Binance’s systems to create a secure and regulated custody infrastructure [4]. This development supports Binance’s efforts to meet regulatory expectations and enhance institutional trust, both of which are critical as the crypto industry matures.

By partnering with BBVA, Binance is reinforcing its position as a platform that supports institutional-grade custody solutions. The bank’s regulatory compliance framework, infrastructure, and reputation make it a suitable partner for Binance’s growing institutional client base [5]. The arrangement is also expected to facilitate access to a wider range of digital assets, including stablecoins like RLUSD and XRP [6].

As traditional financial institutions increasingly enter the crypto space, the Binance-BBVA partnership reflects a broader trend of collaboration aimed at building trust and transparency. The move is likely to draw regulatory attention, particularly as authorities continue to seek clarity on the role of custodians in the digital asset ecosystem. Binance’s approach of diversifying custodial options appears to be a key element in its strategy to build a more resilient and secure platform for its users.

Sources:

[1] Binance Signs New Partnership with Banking Giant Also Serving in Türkiye! (https://en.bitcoinsistemi.com/binance-signs-new-partnership-with-banking-giant-also-serving-in-turkiye/)

[2] Binance and BBVA have partnered to allow clients to hold ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1023710-20250808)

[3] The Institutional Crypto Revolution: How Binance and ... (https://www.ainvest.com/news/institutional-crypto-revolution-binance-bbva-building-infrastructure-future-2508/)

[4] Financial Calendars - Yahoo Finance (https://finance.yahoo.com/calendar?day=2025-08-08)

[5] Coinspeaker's Profile (https://www.binance.com/en/square/profile/coinspeaker)

[6] Galaxy's Post (https://www.linkedin.com/posts/galaxyhq_congratulations-to-mural-pay-a-galaxy-ventures-activity-7358857141****05024-b5cm)