Binance Partners with BBVA to Offer Crypto Custody Solutions
Binance Partners with BBVA for Crypto Custody Solutions
Binance has partnered with Spanish bank BBVA to offer crypto custody solutions, aiming to restore confidence in centralized crypto services following incidents like the FTX collapse and regulatory challenges faced by Binance.
- BBVA will provide custody services to select Binance users, enhancing security through bank-backed collateral.
- This collaboration may bridge institutional investors and the crypto ecosystem.
- Binance plans to expand its presence in the EU market with this partnership.
- Funds held in custody will be invested in U.S. Treasuries at BBVA, which Binance will use as margin for trading on its platform.
- The arrangement reduces counterparty risk for Binance users.
Traditional Banking Adopts Crypto
As the crypto regulatory landscape evolves, traditional banks are increasingly comfortable with digital assets. The Trump administration's pro-crypto stance has contributed to rising interest among financial institutions.
- Changpeng Zhao of Binance supports a proposed White House executive order aimed at preventing banks from adopting anti-crypto policies.
- BBVA is expanding its crypto offerings due to increasing demand, advising clients to allocate 7% of their portfolios to crypto assets.