Binance, one of the largest exchanges in the world, and BBVA, one of the most solid banks in Europe, have formed a partnership that profoundly changes the concept of cryptocurrency custody. This initiative marks the beginning of a new phase in the protection of digital assets, raising the levels of transparency and reliability in the sector.
What changes with the off-exchange custody by BBVA and Binance
The off-exchange mode introduced thanks to this collaboration represents an important innovation: the crypto assets are stored outside of the exchanges, entrusted to a regulated banking institution like BBVA, renowned for solidity and international compliance.
The advantages are not at all theoretical. Recent analyses of the sector indicate that over 200 billion dollars in digital assets are currently held in off-exchange mode globally, a figure that has seen a growth of 45% in the last 18 months.
According to the data collected by industry operators, the adoption of banking custody solutions has allowed for a percentage-wise significant reduction in fraud and asset losses compared to previous years. Analysts observe that this trend is set to further consolidate in the 2025-2027 biennium.
The solution significantly increases security by leveraging three essential aspects:
Drastic reduction of hacking risks: the assets reside on banking platforms, more protected compared to the servers of the exchanges;
Banking compliance: BBVA, already fully compliant with international regulations, offers protections that are not found on the blockchain system alone;
Maximum transparency: possibility of independent audits and a clear separation between the exchange operations and the custody of users’ assets.
Why does the Binance-BBVA agreement shake the entire sector?
In this context, trust plays a pivotal role in the crypto markets. The decision by Binance to entrust off-exchange custody to a major bank addresses a demand strongly voiced by institutional and private investors, heavily impacted by the recent scandals and exchange collapses recorded in the past year.
“We are building bridges between traditional finance and cryptocurrencies, offering our clients an unprecedented standard of security”
stated Pablo Hernández, Head of Digital Assets at BBVA, during a recent interview (Source: BBVA press release, August 2025).
The sentiment among the operators testifies to this change:
New institutional standards for the protection of users;
Expansion of the investor base, with families, funds, and companies now facing lower entry barriers;
Direct impact on the adoption and stability of the crypto market globally.
Tangible advantages: why external custody wins over investors
The separation between asset control and exchange management allows for the protection of users from systemic risks. This is not mere theory: CryptoCompare data indicate that the demand for off-exchange services by institutional investors has doubled after the FTX scandal, with BBVA positioned among the top five European operators by volume held.
The main benefits are highlighted in:
Banking insurance protection;
Strict compliance with the European regulations MiCA (Markets in Crypto-Assets);
Access to cold storage services subjected to periodic checks.
Why exchanges alone are no longer enough – Limits of on-chain custody
The on-chain model, although versatile and decentralized, remains exposed to vulnerabilities: between 2022 and the first half of 2025, hacker attacks on smart contracts and wallet exchanges have caused losses exceeding 2.2 billion dollars.
The solutions offered by the banking system, on the other hand, integrate:
24-hour monitoring and legal protections guaranteed by bank insurance;
Security standards comparable to those of traditional deposit accounts;
Advanced protocols for identity protection, aimed at reducing the risk of private key theft.
The domino effect on investors: what to expect now
Based on Deloitte’s forecasts, over 80% of digital assets held by institutional funds in the EU will be entrusted to bank custody services within the next two years. The Binance-BBVA initiative strengthens trust in the market and could stimulate the entry of new large traditional players.
Family offices, foundations, and companies, which in the past have adopted a cautious approach, now have digital tools supported by the solidity of banking infrastructures and robust legal protections.
Who offers the most secure crypto custody solutions today?
The trend is evident: increasingly frequent are the partnerships between banks and crypto operators. In addition to BBVA, institutions like BNY Mellon and Société Générale are expanding similar services, in response to the growing global demand.
However, the “Binance x BBVA” collaboration stands out for its level of innovation and scope of the offering, aiming to definitively overcome the barrier between traditional and digital finance.
Crypto and banks: the transformation is already underway
Partnerships of this type increase market competitiveness: where once skepticism towards the crypto ecosystem was prevalent, now banks like BBVA present themselves as protagonists of innovation, ensuring transparency and solidity.
A recent study by BeInCrypto (August 2025) highlights that 67% of institutional investors consider banking custody services a preliminary requirement for investing in cryptocurrencies.
Institutional crypto custody and European regulation: what you need to know
The regulatory context is taking shape: the EU has adopted the MiCA regulation, which mandates the separation of custody activities from those of exchanges, in addition to stringent rules on audits, reserves, and transparency, aimed at protecting savers and operators from default risks and fraud. MiCA came into effect on December 30, 2024.
Regulated institutions like BBVA are positioned at the center of this new context, offering investors guarantees that cannot be achieved by on-chain or DIY custody solutions.
What future for cryptocurrency custody? The post-partnership prospects
The recent moves in the sector clearly indicate a direction: professional crypto custody is about to become the standard. Partnerships like the one between Binance and BBVA anticipate a market ready to face regulations, large capitals, and increasingly structured solutions, bringing retail and institutional investors closer under a single umbrella of banking protection and technological innovation.
The central question: will this alliance between traditional financial institutions and crypto leaders limit the original freedoms of the blockchain movement or will it finally guarantee lasting stability? The debate has just begun. Certainly, the new era of decentralized finance will appear more secure and regulated.
FAQ – Off-exchange custody with BBVA and Binance: the real benefits
Maximum security: the assets remain separate from the exchange and are protected by the banking system.
Greater compliance: strict adherence to European regulations with certified transparency.
Legal protections and audit: periodic checks confirm the actual presence of cryptocurrencies in custody, a crucial element for bull and bear investors oriented towards the long term.
Conclusions: the Binance-BBVA turning point marks the future of crypto security
The agreement between Binance and BBVA represents a turning point: it is no longer just about custody, but an advanced security platform that integrates bank guarantees with the dynamism of the crypto world.
With concrete data and new regulatory standards, the digital asset sector enters a phase of maturity, where trust ceases to be a possibility and becomes an essential requirement.