The collaboration with BBVA is big news...

Binance is partnering with BBVA (Banco Bilbao Vizcaya Argentaria), the third-largest bank in Spain, to deposit a portion of customer funds in the form of U.S. Treasury bonds held in custody by BBVA, and to use them as trading collateral.

This move is particularly critical amid the global trend towards security and compliance in exchanges, especially following Binance's $4.3 billion fine in 2023 for compliance issues, which has significantly heightened market concerns over asset safety.

Partnering with BBVA means that user funds will be held by an independent bank rather than being fully concentrated in exchange internal accounts. This model not only reduces single-point risk but also provides higher transparency and security for institutional investors and high-net-worth clients.

The design of U.S. Treasury bonds as the underlying asset further enhances liquidity and credit backing, aligning with international regulatory requirements for high-quality collateral.

In the industry context, the collapse of FTX and multiple incidents of asset misappropriation on crypto platforms have made "third-party custody + high-quality collateral" the core path for rebuilding trust in the industry.

BBVA's robust image in the European and Latin American markets helps Binance gain an advantage in the global compliance process and may lay the groundwork for further bank collaborations and expansion of institutional business.

If this collaboration model can be successfully implemented, it may become a reference example for the deep integration of crypto and traditional finance.