Binance, a major global cryptocurrency exchange, has partnered with Spanish banking group BBVA to introduce a new custody service aimed at bolstering security and restoring investor confidence.
The collaboration involves holding Binance customer funds in US Treasurys under BBVA’s management, significantly reducing counterparty risk for users. This move directly addresses lingering security concerns within the crypto sector, particularly those highlighted by incidents like the collapse of the FTX exchange.
BBVA’s established reputation within the traditional banking sector is a key element of the partnership, providing enhanced name recognition and trust compared to less familiar banking entities. The initiative is widely viewed as a strategic step towards bridging the gap and attracting more institutional investors to the cryptocurrency ecosystem.
Additionally, Binance has launched a dedicated service to further strengthen its overall security posture, referencing the need to improve defenses following industry breaches.