Binance partners with a giant Spanish bank to safeguard assets for traders

The world's largest cryptocurrency exchange, Binance, has just partnered with Banco Bilbao Vizcaya Argentaria (#BBVA ) – the second largest bank in Spain – in its most prominent custody agreement. Accordingly, BBVA will hold customer collateral assets in the form of U.S. Treasury bonds, which Binance accepts as collateral for trading.

With an asset scale of approximately $835 billion, BBVA becomes a safe 'transfer point,' helping traders' money stay out of the exchange and reducing counterparty risk. This move comes after #Binance was fined $4.3 billion in the U.S. for anti-money laundering violations, along with increased pressure to restore trust following the FTX incident in 2022.

According to experts, the custody of assets at a large, tightly regulated bank, held in high liquidity instruments like Treasury bonds, is a step toward bringing the crypto market infrastructure closer to traditional financial standards (TradFi). This not only separates the operational risks of the exchange but also strengthens investor confidence.

Not only supporting Binance, BBVA has also recently expanded its crypto segment, becoming the first bank in Spain to offer Bitcoin and Ethereum trading and custody for individual customers after receiving license #MiCA .