Binance $BNB has teamed up with BBVA, Spain’s third-largest bank, to offer off-exchange custody services for its customers, according to a report by the Financial Times. This strategic move aims to boost asset security and user trust by keeping customer funds separate from the exchange itself.
🔐 How It Works
Through the new arrangement:
Customer assets are parked in U.S. Treasuries held by BBVA.
These Treasuries are then used as margin for trading on Binance.
If Binance were to face disruption or failure, customer funds remain safe and untouched in BBVA's custody.
This setup reduces counterparty risk, offering users peace of mind that their assets are not directly exposed to exchange operations.
💡 Why It Matters
This is part of a wider trend: crypto exchanges are now being pushed to separate custody from trading, especially after the FTX collapse in 2022, which left billions in user funds frozen. Binance’s collaboration with BBVA marks a significant step toward more transparent and secure fund management.
🏦 BBVA’s Growing Crypto Interest
BBVA is no stranger to the crypto space. This year, the bank:
Rolled out crypto trading and custody via its mobile app.
Recommended high-net-worth clients to allocate up to 7% of their portfolio into Bitcoin $BTC and Ethereum $ETH .
🔍 Final Thoughts
With increasing regulatory scrutiny and user demand for safer crypto platforms, Binance’s move to partner with a traditional financial giant like BBVA signals a new standard in exchange-custodian relationships.
Are off-exchange custody solutions the future of crypto trading? Let’s discuss 👇
