Binance Partners with BBVA to Offer Off-Exchange Asset Custody: Report

Key Points

1. Binance is collaborating with Spain's BBVA to provide off-exchange custody services, a move to restore investor confidence following its $4.3 billion fine and the FTX collapse.

2. BBVA, Spain's third-largest bank, will custody Binance users' assets in U.S. Treasuries, separating custody from trading to mitigate counterparty risk.

3. The partnership enhances Binance's credibility by leveraging BBVA's established reputation, while BBVA expands its own crypto offerings for Spanish retail clients.

4. Binance has previously offered custody options through Switzerland’s Sygnum and FlowBank, indicating a broader strategy to secure institutional partnerships.

5. Paxos Trust Company agreed to a $48.5 million settlement with NYDFS over its dealings with Binance, highlighting ongoing regulatory scrutiny in the crypto industry.