Binance, the world’s largest crypto exchange, has partnered with Spanish banking giant BBVA to provide safer storage for its customers' digital assets.
Investor Fund Security
Crypto investors have grown cautious since the collapse of FTX in 2022, which highlighted the risks of keeping funds on trading platforms. Under the new arrangement, BBVA will keep traders' funds in U.S. Treasuries, while Binance will accept these funds as trading margin, creating a protective layer for investors.
BBVA Adds Credibility to Binance in Crypto
BBVA, a major Spanish and Latin American bank, brings significant credibility to the partnership with Binance. According to one source, the bank's name can speed up the due diligence process for traders deciding whether to work with Binance. BBVA is also actively expanding its crypto services, having launched Bitcoin and Ethereum trading and custody services in July 2024.
Trends in the Cryptocurrency Industry
The Binance-BBVA partnership is part of a broader trend in the crypto industry to offer custody solutions off trading platforms. In January 2024, Binance allowed larger clients to use independent custodians like Sygnum and FlowBank. Other major exchanges are also taking similar steps, indicating growing cooperation between traditional banks and the cryptocurrency sector.
The partnership between Binance and BBVA could be a significant step towards enhancing security in the crypto industry and rebuilding investor trust.
