Binance now trusts BBVA with the custody of bitcoin and cryptocurrencies
Binance joins forces with BBVA to offer external custody of bitcoin, reinforcing confidence amid fears of a new collapse like FTX
To increase user confidence after the FTX collapse, Binance has initiated a collaboration with the Spanish bank BBVA. This is to offer an external custody service for bitcoin (BTC) and other digital assets.
This alliance will allow customers to keep their funds outside of Binance, in a regulated and traditional environment.
Sources close to the agreement indicated that BBVA, the third largest bank in Spain, now acts as one of the few independent custodians collaborating with the popular cryptocurrency exchange. The measure aims to address concerns from investors who, after the collapse of FTX in 2022, prefer to safeguard their funds in traditional financial institutions.
Thus, user funds will be held in custody by BBVA, which will back them with U.S. Treasury bonds, according to sources close to the agreement. Binance, for its part, will accept these assets as margin for trading on its platform.
In recent months, BBVA has strengthened its commitment to cryptocurrencies. As reported by CriptoNoticias, in March the banking entity announced that the Spanish National Securities Market Commission (CNMV) had approved its service to buy, sell, and store bitcoin and ether (ETH), which was enabled in July directly from the bank's mobile app.
This collaboration comes after legal challenges for Binance. In 2023, U.S. authorities imposed a fine of $4.3 billion on the exchange for allegedly facilitating operations related to money laundering. Its founder, Changpeng Zhao, served a four-month prison sentence, being released in September 2024. Since then, the company has significantly reduced its presence in the country
