🛡️ Binance + BBVA: External Custody for Cryptoassets
#Binance has formalized a strategic alliance with BBVA, one of the largest banks in Spain, to offer its customers the possibility of custodying their assets outside of the exchange.
🔍 What does this alliance entail?
• BBVA will act as an independent custodian of Binance's customer funds.
• The assets will be held in U.S. Treasury bonds under the custody of #BBVA .
• Binance will accept those assets as margin for trading, without having direct access to them.
🎯 Main objective
• Restore trust in the crypto ecosystem after the collapse of FTX and regulatory issues facing Binance.
• Reduce counterparty risk by separating the funds from the exchange.
📈 Key context
• Binance was fined USD 4.3 billion in 2023 for violations of anti-money laundering laws.
• Its founder, Changpeng Zhao, served 4 months in prison, and the company has reduced its presence in the U.S.
🏦 BBVA in the crypto world
• In March, BBVA received authorization to offer buying, selling, and storage services for BTC and ETH in Spain.
• It already allows crypto transactions from its mobile app.
🌐 Other custodian partners of Binance
• Sygnum and FlowBank (Switzerland) also offer similar services.
