Binance, the world’s largest cryptocurrency exchange, is partnering with Spanish banking giant BBVA to allow customers to store their digital assets off the exchange, according to a report by the Financial Times on Friday.
BBVA is reportedly one of only a small number of independent custodians working with Binance, two sources familiar with the matter told the publication. This move aims to strengthen crypto asset security and reassure investors in the wake of the 2022 FTX collapse, which raised concerns about fund safety on centralised platforms.
Regulatory Pressures Drive Custody Shift
The partnership comes as Binance faces heightened global regulatory scrutiny. Crypto exchanges are increasingly adopting independent custody solutions to boost transparency and investor confidence.
A BBVA spokesperson declined to comment on current or potential clients but confirmed that the bank provides cryptocurrency custody services for institutional investors in markets such as Turkey and Switzerland.
Binance’s Legal Challenges
This development follows Binance’s legal troubles earlier this year. In February, U.S. authorities fined Binance over $4.3 billion for violating federal anti-money laundering and sanctions laws. The company’s founder and former CEO, Changpeng Zhao, also received a four-month prison sentence for related compliance lapses.
Why It Matters
The Binance–BBVA collaboration marks a significant step toward strengthening asset protection for crypto users and could set a precedent for other exchanges seeking to mitigate risk and improve customer trust.
