Cryptocurrency exchange Binance has partnered with one of Spain’s largest banks — Banco Bilbao Vizcaya Argentaria (BBVA) — to allow users to store their digital assets outside of the trading platform, according to Financial Times.
Why It Matters
Following the high-profile collapse of FTX in 2022, investors have increasingly sought to minimize the risks of holding funds directly on cryptocurrency exchanges. The loss of access to assets during FTX’s bankruptcy prompted traders to look for independent and more secure custody solutions.
The deal with BBVA — Spain’s third-largest bank — gives Binance a significant reputational boost. The bank will act as an independent custodian, and its name alone carries strong associations with security and trust.
How the Structure Works
According to sources, traders’ funds will be held at BBVA in the form of U.S. Treasury bonds. Binance will accept these assets as collateral for trading, a structure market participants say “reduces the risk of an FTX 2.0 scenario.”
This model aligns with an industry trend where major crypto platforms are moving away from simultaneously acting as exchange, custodian, and lender — instead, these functions are increasingly split among different institutions.
Background and Previous Steps
In 2023, Binance paid a record $4.3 billion fine in the U.S. for anti–money laundering compliance failures. Its founder, Changpeng Zhao, received a four-month prison sentence. The company subsequently scaled back its U.S. operations but has been gradually restoring some services.
Previously, Binance began offering clients alternative custody options through Swiss institutions Sygnum and FlowBank to mitigate risk. Before that, the only option was Ceffu — a custodian criticized by regulators.
BBVA’s Crypto Expansion
BBVA has been actively expanding its crypto services. Last month, the bank launched Bitcoin and Ethereum trading and custody for Spanish clients directly through its mobile app. It has also advised private banking clients to allocate up to 7% of their portfolios to digital assets.