Binance, the world's largest cryptocurrency exchange, announced a new strategic partnership with the Spanish bank BBVA, making it one of the custodial service providers for its customers.
This step aims to enhance investors' confidence, especially after the crises that the cryptocurrency sector has witnessed in recent years, notably the collapse of the FTX exchange in 2022.
Under the agreement, Binance clients will be able to store their assets in BBVA Bank instead of just keeping them within the platform or with its subsidiary Ceffu, as was previously the case. This step adds to previous initiatives from Binance, which allowed some major clients to use other banks such as Swiss Sygnum and FlowBank.
The investors' funds will be held at BBVA Bank in the form of U.S. Treasury bonds, used as collateral for trading on the platform, enhancing security and providing customers with more reassurance.
For its part, BBVA Bank continues to expand into the digital currency market, having launched last month trading and custody services for Bitcoin and Ethereum through its app, and advised private banking clients to allocate up to 7% of their portfolios to digital assets.
This partnership represents an important step in integrating traditional financial infrastructure with the world of crypto assets, and may encourage more global banks to enter this rapidly growing field, at a time when Binance seeks to solidify its position as a key player capable of adapting to market changes and investor needs.