Binance partners with BBVA to store customer assets, enhancing trust after penalties and market collapse events.

This collaboration allows users to hold assets at BBVA instead of on the exchange, using U.S. Treasury bonds as collateral for trading, enhancing safety and reinforcing Binance's reputation.

MAIN CONTENT

  • Binance partners with BBVA – the third largest bank in Spain.

  • Customer assets will be held in the form of U.S. Treasury bonds at BBVA.

  • An initiative to strengthen trust after record fines and the FTX bankruptcy event.

What is the purpose of Binance's collaboration with BBVA?

This is a strategic move by Binance to enhance its reputation and provide reassurance to investors after lawsuits and heavy penalties from the United States. BBVA is an independent bank with a brand and reliability that is higher than Binance's current partners.

The collaboration allows users to hold assets directly at BBVA instead of on the exchange, reducing the risk of asset depreciation when issues occur at the exchange. At the same time, Binance will use U.S. Treasury bonds held by BBVA as collateral for trading activities, demonstrating a commitment to greater transparency and safety.

Why was BBVA chosen as the asset custody partner for Binance?

BBVA is the third largest bank in Spain with a reputable and long-standing brand, which makes a difference compared to Binance's previous custody partners. Choosing BBVA helps Binance restore customer trust and minimize concerns about asset safety.

This bank provides custody services in the form of real assets, specifically U.S. Treasury bonds, a type of highly reliable asset. This model reflects professionalism in managing Binance's digital assets while facilitating the control and monitoring of users' capital.

Binance collaborates with BBVA to 'increase security and transparency for investors, especially after legal challenges in 2023.'

Internal Binance statement, 2023

What does holding assets in the form of U.S. Treasury bonds signify?

Using U.S. Treasury bonds as collateral assets demonstrates a commitment to ensuring stability and safety for users' assets. These bonds are among the most reliable and liquid assets in the world.

As a result, Binance can minimize risks from volatility and fraud while creating a safer mechanism for trading activities. This form also helps customers feel secure that their assets are not affected by internal exchange risks.

What is the reaction of investors and the market regarding this collaboration?

The BBVA bank brand supports Binance in creating greater trust from investors, especially after the shocks from the FTX bankruptcy event in 2022 and the record fine of 4.3 billion USD from the United States in 2023. This is seen as a significant improvement in asset custody safety.

The cryptocurrency market sees this as a positive signal, as exchanges increasingly aim to collaborate with traditional financial institutions, enhancing transparency and ensuring asset safety for users.

What other asset protection measures is Binance implementing?

Alongside collaborating with BBVA, Binance has implemented multi-signature custody methods and cold wallets to protect user assets from cybersecurity risks. Risk management and legal compliance mechanisms have been tightened to meet the stringent regulatory requirements from state authorities.

The combination of security technology and collaboration with traditional banks helps Binance enhance user experience regarding safety and transparency in cryptocurrency transactions.

Frequently Asked Questions

What benefits does the collaboration between Binance and BBVA bring to users?

Users can store assets at BBVA in the form of U.S. Treasury bonds, enhancing safety and transparency.

Why doesn't Binance hold assets directly on the exchange anymore?

Holding assets in an independent bank helps reduce the risk of asset loss when the exchange encounters issues or is attacked.

What role do U.S. Treasury bonds play in this collaboration?

This is a highly reliable and liquid collateral asset, ensuring investor capital is safer.

Does this collaboration help reduce risks when the market is volatile?

Yes, thanks to the custody assets guaranteed by a reputable bank and stable assets like U.S. Treasury bonds.

What advantages does BBVA have as a partner of Binance?

BBVA has a high reputation in Europe, a strong brand, and extensive asset management experience, creating trust for users.

Source: https://tintucbitcoin.com/binance-hop-tac-bbva-tay-ban-nha-luu-tru/

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