Lucía Peña
Binance, the world’s leading cryptocurrency exchange, is collaborating with Spanish banking giant BBVA to provide off-exchange asset custody for its users, according to a report by the Financial Times.
Citing sources familiar with the development, the report reveals that BBVA will serve as an independent custodian, allowing Binance users—especially institutional clients—to store their assets outside the exchange. This initiative marks a strategic shift to rebuild investor confidence following Binance’s $4 billion settlement with U.S. regulators in November 2023 over compliance failures.
Why Binance Is Moving Toward Off-Exchange Custody
The partnership with BBVA comes in response to the growing risk perception tied to centralized exchanges, especially after the collapse of FTX in 2022, which resulted in billions in locked assets. To address such concerns, the new arrangement reportedly places client funds in U.S. Treasury securities under BBVA’s custody. Binance then uses those assets as margin for trading—mirroring traditional finance models to minimize counterparty risk.
As one insider noted, this structure creates a “firewall” between custody and trading, reducing the chances of an FTX-style collapse and aligning crypto practices with more regulated financial frameworks.
Traditional Banks Embrace Crypto as Regulations Evolve
This partnership signals a broader trend: traditional financial institutions are increasingly open to crypto collaboration. BBVA’s involvement brings not only regulatory assurance but also a level of brand credibility that Binance’s past custody partners lacked. “If you mention BBVA, the box is ticked,” said one person close to the deal, referencing how the bank’s reputation simplifies institutional due diligence.
The move is further fueled by pro-crypto signals from the Trump administration in the U.S. and the implementation of MiCA regulations in the EU, which offer a clearer compliance roadmap for banks entering the space.
BBVA’s Growing Crypto Footprint
In addition to this new custodial role, BBVA has been expanding its crypto services, launching Bitcoin and Ethereum trading and custody solutions in July. The bank also advises its high-net-worth clients to allocate 3% to 7% of their portfolios to crypto—an aggressive stance compared to traditional banking norms.
Binance Isn’t Alone: The Industry Trend Toward Safer Custody
Binance’s strategy mirrors moves by other major players. In January 2024, the exchange enabled select clients to use third-party custodians like Sygnum and FlowBank, breaking away from sole reliance on its internal partner, Ceffu, which had faced scrutiny from the SEC as a “rebranded” Binance affiliate.
Other exchanges are following suit:
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Deribit introduced off-exchange custody with BitGo and Copper, enabling spot and derivatives trading while assets remain secured externally.
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In November 2024, OKX partnered with Komainu to deliver institutional custody services.
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Bitget integrated Copper’s ClearLoop network in 2023, offering similar protections to institutional users.
