Binance partners with BBVA to store customer assets in U.S. Treasuries

Binance has added BBVA, Spain’s third-largest bank, to its growing network of independent custodians, marking a strategic step to enhance the security of customer assets and reduce counterparty risk [1]. Under the new arrangement, traders’ collateral will be stored with BBVA in U.S. Treasuries. Binance will then accept these holdings as margin for trading on its platform, moving away from direct asset storage in its own exchange wallets [1]. This approach ensures that customer assets remain under third-party custody, reducing the risk associated with operational or liquidity challenges on the exchange [1].

The collaboration reflects Binance’s broader strategy to align with traditional financial institutions and provide clients with diversified, regulated storage solutions across jurisdictions [1]. Prior to these partnerships, users could only store assets on the platform or through Ceffu, a custodian described by U.S. officials as a “mysterious Binance-related entity” [1]. By expanding its custody options, Binance aims to address concerns over fund safety and increase transparency in asset management [1].

Sources close to the matter have indicated that Binance prioritizes partnerships with institutions that traders trust, given the growing demand for asset segregation and regulated banking oversight [1]. Some clients have expressed a preference for third-party collateral management, citing enhanced security and regulatory compliance as key benefits [1]. This shift aligns with the lessons drawn from the 2022 FTX collapse, where customer funds were not segregated and were accessed by a sister company, leading to widespread losses and eroded trust [1].

In FTX’s case, customer assets were held on the exchange’s books without clear separation from corporate resources, enabling misuse and contributing to its eventual insolvency [1]. The fallout highlighted the importance of independent custody structures in the digital asset space [1]. As a result, traders have increasingly sought out platforms that offer third-party custodial services to minimize reliance on a single exchange [1].

Binance’s adoption of U.S. Treasuries as collateral also underscores the exchange’s commitment to using liquid and secure asset classes, which can enhance operational flexibility for traders while mitigating systemic risks in the crypto sector [1]. This move is expected to bolster investor confidence, align with evolving regulatory expectations, and provide greater clarity in how digital assets are managed and safeguarded [1].

Source: [1] Binance expands custody network with Spain’s BBVA to store assets in $US Treasuries (https://invezz.com/news/2025/08/08/binance-expands-custody-network-with-spains-bbva-to-store-assets-in-us-treasuries/)