Binance teams up with BBVA to let customers keep assets off exchange
Binance has entered into an agreement with BBVA, one of Spain’s largest banks, to provide a custodial service allowing Binance customers to store their crypto assets in BBVA-controlled accounts rather than on the Binance platform. The partnership, reported by the Financial Times, is intended to improve asset security by segregating customer holdings from exchange wallets.
Under the proposed framework, BBVA will act as an independent custodian, maintaining private keys and reserves for clients who opt into the service. Binance clients will be able to choose BBVA custody at withdrawal, enhancing operational transparency and reducing counterparty risk associated with on-exchange storage.
Key features of the partnership
- Custody model: BBVA holds assets independently of Binance hot wallets.
- Optional service: Users may elect BBVA custody at withdrawal time.
- Security benefits: Reduced exposure to exchange wallet security incidents.
Regulatory context
As regulatory scrutiny intensifies on crypto exchanges, partnerships with licensed financial institutions may become more common. For Binance, the BBVA arrangement could support compliance efforts across jurisdictions by demonstrating third-party custodial options and stronger asset segregation controls.
Market reaction
Financial market analysts view the partnership as a positive step toward institutional-grade custody for digital assets. BBVA’s involvement may attract risk-averse clients seeking regulated custody solutions, while helping Binance maintain a broad user base amid evolving global crypto regulation.
Reporting by [Reporter Name]; editing by [Editor Name].
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