Crypto exchange Binance has partnered with Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) to enhance custody solutions for user assets. Under this agreement, customer funds held in U.S. Treasuries will be stored securely at BBVA, allowing Binance to use those same funds as trading margin on its platform.
Strengthening Trust with Traditional Finance
This move reflects Binance’s strategic shift toward working with established traditional finance institutions to appeal to retail users who prefer trusted, third-party custody. By keeping digital assets off the exchange, the platform aims to reduce counterparty risk and improve transparency.
Proactive Risk Management
The partnership is a preventative measure designed to avoid a repeat of the FTX collapse—where commingled funds and lack of third-party oversight led to massive losses. By engaging independent custodians like BBVA, Binance reinforces asset separation and accountability.
Expanding Custody Network
Beyond BBVA, Binance has expanded its network of trusted custodians to include institutions like Switzerland’s Sygnum and FlowBank. This diversified custody infrastructure helps further mitigate the risks associated with centralized storage.
