In a major move to strengthen trust in the crypto industry, Binance has partnered with Spanish banking powerhouse BBVA to offer independent, bank-backed custody for customer funds. According to the Financial Times, this new arrangement allows Binance users to store their assets securely with BBVA, supported by U.S. Treasurys, which Binance will then accept as margin for trading.
This initiative is a direct response to the increased demand for transparency and security in the crypto space, especially following the collapse of platforms like FTX and Binance’s own series of regulatory challenges. By working with a globally recognized bank, Binance is looking to bridge the gap between traditional finance and crypto, aiming to create a more secure environment for both retail and institutional investors.
BBVA’s Involvement Could Boost Investor Confidence
While Binance has already established custody relationships with Switzerland’s Sygnum and FlowBank, its partnership with BBVA is particularly noteworthy due to the bank’s global reputation and strong presence in the financial world. This collaboration is expected to instill greater confidence among investors who are cautious about storing funds on centralized crypto exchanges.
The idea is simple: by letting a trusted third-party bank hold customer assets, Binance reduces counterparty risk—a key concern that came to the forefront after recent high-profile failures in the industry. These bank partnerships serve as a safeguard, making it less likely that users would lose access to their funds due to mismanagement or insolvency at the exchange level.
Binance Launches Instant Crypto-to-Fiat Withdrawals in Europe and the UK
In addition to the custody partnership, Binance has rolled out a new feature for users in the European Economic Area and the United Kingdom. Customers can now convert their crypto holdings to fiat currency and withdraw funds directly to a Mastercard, with near-instant availability.
This new service adds a layer of convenience that many crypto platforms lack, especially for users who need quick access to their money. Combined with the enhanced fund protection provided through BBVA and other banking partners, Binance is positioning itself as a more reliable and user-friendly platform in an increasingly regulated digital asset landscape.
As the crypto industry matures, steps like these are crucial in attracting institutional capital and rebuilding trust among retail users. With added security, instant withdrawals, and partnerships with established banks, Binance is reshaping the way centralized crypto platforms operate.
