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Binance has partnered with Spanish banking giant BBVA to provide independent custody for customer funds, according to the Financial Times. The arrangement allows Binance users to hold assets with BBVA, backed by US Treasurys, which the exchange then accepts as margin for trading. This move is designed to enhance investor protection and reduce counterparty risk, following high-profile industry collapses such as FTX and Binance’s own regulatory hurdles.
The deal marks a significant step toward merging traditional banking safeguards with the crypto ecosystem. Alongside BBVA, Binance has also secured custody partnerships with Switzerland’s Sygnum and FlowBank, but BBVA’s strong brand recognition is expected to inspire greater trust among investors. By involving established banks, Binance aims to restore confidence in centralized crypto platforms and attract more institutional participation.
In a separate update, Binance has launched a service enabling European Economic Area and UK users to convert crypto to fiat and withdraw directly to Mastercard with near-instant availability. This added convenience, combined with secure bank-backed custody, positions Binance as a more robust and user-friendly platform in the evolving digital asset market.
