The world's largest crypto exchange, Binance, has announced a partnership with Spain's third-largest bank, BBVA, to create a safer method for clients to store their assets.
Collaboration Between Binance and BBVA
According to the Financial Times, BBVA has become an independent custodian for some Binance clients. Instead of holding all assets on the exchange, clients can now keep their funds in U.S. Treasuries managed by BBVA.
Benefits of the New Asset Custody
Treasuries can be used as margin for trading on Binance, but in the event of an exchange failure, the assets will be protected under the bank's management. This decision aims to mitigate risks for investors, particularly following the FTX collapse in 2022.
Trends in the Crypto Market
BBVA has also begun to assert itself in the crypto space, offering trading and custody services for Bitcoin and Ethereum through its mobile app. Many exchanges, such as Deribit and OKX, are also developing similar services to ensure asset security.
The partnership between Binance and BBVA opens up new opportunities for secure custody of crypto assets, reflecting growing trends in the industry toward improving investment protection.
