Binance has teamed up with Spain’s BBVA to let customers store their assets off the exchange, a move aimed at boosting investor confidence nearly two years after the company paid a record $4.3 billion US fine.
Key Takeaways:
- Binance partnered with BBVA to offer off-exchange asset custody, aiming to boost investor trust.
- Client funds will be held in U.S. Treasuries at BBVA and accepted by Binance as trading margin.
- BBVA’s growing crypto services reflect stronger bank participation following clearer U.S. and EU regulations.
Sources familiar with the arrangement told the Financial Times that BBVA is now one of a select group of independent custodians working with the world’s largest crypto exchange.
The partnership comes as trading platforms work to reassure clients in the wake of the 2022 collapse of FTX, which trapped billions in customer funds and prompted a rush toward independent custody solutions.
Clearer US and EU Rules Spur Traditional Banks’ Move Into Crypto
Traditional banks, meanwhile, have shown greater willingness to enter the crypto space following the rollout of clearer regulations in the U.S. and EU.
BBVA’s brand strength adds weight to Binance’s custody offering. “If you say BBVA, people are like ‘box tick, next’,” one person familiar with the deal said, highlighting the ease of due diligence for potential users.
Under the arrangement, client funds are held by BBVA in U.S. Treasuries, which Binance then accepts as margin for trades — a structure designed to avoid an “FTX 2.0” scenario.
Binance began offering third-party custody options early last year through partners like Switzerland’s Sygnum and FlowBank, following customer pressure to mitigate counterparty risk.
Prior to that, client assets were held either on the exchange or with Ceffu, a custodian U.S. authorities had described as closely linked to Binance.
The move also reflects shifting market sentiment. Support from the Trump administration has fueled record Bitcoin prices and higher trading volumes, encouraging banks to deepen their involvement with digital assets.
BBVA has been expanding its crypto services in line with growing demand from its retail base.
In July, the bank launched Bitcoin and Ether trading and custody directly via its mobile app for Spanish customers and advised private banking clients to allocate up to 7% of their portfolios to crypto.
CZ Seeks Dismissal of FTX’s $1.76B Lawsuit
Just recently, Binance co-founder and former CEO Changpeng Zhao (CZ) filed a motion to dismiss a $1.76 billion clawback lawsuit brought by the FTX bankruptcy trust.
He argued the Delaware court lacks jurisdiction over him, as he resides in the United Arab Emirates and the case has little connection to U.S. law or territory.
His legal team claims that FTX’s accusations are legally unsupported and irrelevant to federal securities regulations.
FTX filed the suit in late 2024, aiming to recover $1.76 billion it says was improperly transferred to Binance during a 2021 share purchase agreement.
The now-bankrupt exchange contends the transaction was fraudulent, given its undisclosed insolvency at the time.
Binance has consistently labeled the claims as meritless and an attempt to shift blame away from FTX founder Sam Bankman-Fried.
In the latest filing, CZ criticized FTX’s efforts to “nonsensically blame” him and Binance for Bankman-Fried’s misconduct. He maintains that the allegations do not meet legal standards for constructive fraud.
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