BBVA to Provide Custody Services for Binance Customer Assets
Binance has partnered with BBVA, Spain’s third-largest bank, to enhance asset protection for its customers. The custody service will separate trading activities from client funds by holding assets in U.S. Treasuries, ensuring their safety in case of a Binance failure.
Key points include:
- The custody arrangement parks client assets in U.S. Treasuries managed by BBVA.
- This move follows increased scrutiny on crypto exchanges post-FTX collapse, which highlighted risks of in-house fund management.
- Binance has also allowed clients to utilize other third-party custodians such as Sygnum and FlowBank.
- BBVA is expanding into crypto services, offering trading and custody through its mobile app.
- The bank advises clients to invest up to 7% of their portfolios in bitcoin and ether.