According to the Financial Times, the world’s largest cryptocurrency exchange, Binance, has chosen Spanish bank BBVA as its custody provider.
BBVA, Spain’s third-largest bank, recently began providing services to Binance as one of its few independent custodians. This move aims to alleviate investor concerns about the exchange’s security, particularly following the FTX bankruptcy in 2022.
With this partnership, Binance has allowed customers to keep their assets in the bank instead of on an exchange.
Binance previously required its customers to store their assets only with Binance or its subsidiary Ceffu.
However, Binance’s stance changed early last year when it began allowing certain large clients to use alternatives like Switzerland-based Sygnum Bank and FlowBank.
Under the partnership, investors’ funds will be held at BBVA in the form of US Treasury bonds, which Binance will accept as trading collateral.
BBVA continues to expand into the cryptocurrency market to meet growing demand from its retail customers. Last month, the major bank announced the launch of Bitcoin (BTC) and Ethereum (ETH) trading and custody services for Spanish clients directly through the bank’s mobile app.
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BBVA also stated that it recommends its private banking clients invest up to 7% of their portfolio in crypto assets.
*This is not investment advice.
