Binance partners with BBVA for secure crypto custody in U.S. Treasuries

Binance has announced a partnership with BBVA, Spain’s second-largest bank, to provide off-exchange custody services for crypto assets. The collaboration introduces a new model where customer funds are held in U.S. Treasury securities by BBVA, which Binance uses as margin for trading. This approach ensures that client assets are separated from the exchange’s operations, aiming to mitigate risks associated with centralized asset management and prevent scenarios like the collapse of FTX [1].

The partnership marks a strategic shift for Binance as it seeks to rebuild trust following regulatory scrutiny, including a high-profile settlement in late 2023 over anti-money laundering violations. By leveraging BBVA’s regulated infrastructure, Binance is enhancing transparency and regulatory compliance, which are increasingly critical in a sector under close global financial oversight [2].

BBVA, which has been expanding its digital asset offerings in Spain, joins Sygnum and FlowBank as one of Binance’s selected custodians. The collaboration is expected to provide institutional and individual investors with greater confidence in how their digital assets are managed. This move aligns with broader trends showing traditional financial institutions becoming more involved in the crypto ecosystem, offering secure and compliant solutions [3].

The new custody model is designed to address long-standing concerns over the safety of digital assets. In the wake of the FTX crisis, the industry has emphasized the need to separate trading and custody functions. By doing so, Binance and BBVA aim to create a more resilient framework for asset management, where user funds are protected even if the exchange itself encounters operational issues [4].

BBVA has already taken steps to integrate digital assets into its services, including enabling Bitcoin and Ether trading via its mobile app in Spain and securing authorization to offer retail crypto services in 2025 [5]. The partnership with Binance is expected to further strengthen its position in the digital asset market and highlight the increasing convergence between traditional finance and blockchain technology.

This collaboration reflects a broader industry movement toward institutionalization and enhanced security. As more regulated entities enter the crypto space, the sector may see increased adoption and trust from institutional investors and retail users alike. The Binance-BBVA partnership is a significant step in that direction, demonstrating the potential for crypto to evolve into a more mainstream financial asset class.

Source:

[1] Binance teams up with banking giant BBVA to let clients ...

(https://cryptobriefing.com/binance-bbva-custody-partnership/)

[2] Binance Boosts Trust with New BBVA Custody Deal

(https://coinpaper.com/10426/binance-boosts-trust-with-new-bbva-custody-deal)

[3] BBVA to custody crypto exchange Binance client assets in ...

(https://seekingalpha.com/news/4482536-bbva-to-custody-crypto-exchange-binance-client-assets-in-us-treasuries---report)

[4] Binance taps Spain's BBVA to offer safer crypto custody ...

(https://cointelegraph.com/news/binance-bbva-cryptocurrency-custody-partnership)

[5] Binance and BBVA Join Forces to Enhance Crypto Security

(https://beincrypto.com/binance-bbva-crypto-custody-spain/)