Binance Partners With Spanish Banking Giant BBVA on Crypto Custody Solutions

Crypto exchange Binance has recently partnered with Spanish banking giant BBVA, to explore crypto custody solutions for its customers.

Sources familiar with the matter told Financial Times that the move seeks to restore confidence in centralized crypto services, after major incidents like FTX implosion, along with Binance’s own regulatory hurdles.

Binance Joins Hands With Spanish Bank BBVA for Crypto Custody

Two sources familiar with the matter stated that Spain’s third-largest banking institution, BBVA, is offering custody services to a small number of Binance users.

They also provide enhanced security via the bank-backed collateral. Last month, in July, BBVA launched BTC BTC $116 641 24h volatility: 0.2% Market cap: $2.32 T Vol. 24h: $34.67 B , ETF trading and custody services for its customers.

As traditional finance offers more secure and regulated custody solutions, Binance’s initiative could serve as a bridge between institutional investors and the broader crypto ecosystem, reported Financial Times.

With this partnership, Binance is also looking to expand its footing in the EU crypto industry.

One source noted that the Spanish bank has stronger “name recognition” compared to Binance’s current partners.

“If you say BBVA, people immediately see it as a checkmark for due diligence,” the person said.

According to sources cited by the Financial Times, Binance’s custody arrangement with BBVA involves holding customer funds in U.S. Treasuries at the Spanish bank.

Binance then accepts these assets as margin for trading on its platform, thereby lowering counterparty risk.

Banking Players Get Comfortable With Crypto

With the evolving crypto regulatory landscape, traditional banking players are getting comfortable with holding and trading digital assets.

Owing to the Trump administration’s pro-crypto stand, crypto sentiment is rising among traditional players.

Binance founder Changpeng Zhao welcomed a proposed White House executive order aimed at discouraging banks from adopting anti-crypto policies.

The directive under consideration would impose stricter penalties on banks found to be biased against cryptocurrency-related businesses.

Another source familiar with the arrangement noted that digital asset exchanges like Binance recognize traders’ preference to use third parties for securing collateral in trusted institutions.

BBVA, meanwhile, has been expanding its crypto offerings in response to what it describes as rising demand from retail clients. The Spanish banking giant has also advised its clients to invest nearly 7% of their portfolio in crypto assets.

next

The post Binance Partners With Spanish Banking Giant BBVA on Crypto Custody Solutions appeared first on Coinspeaker.