Binance Taps Spain's Second-Largest Bank BBVA to Hold Trader Margin in Treasuries

Key Points

1. Binance has partnered with BBVA, Spain's second-largest bank, to hold client funds in U.S. Treasuries as margin for trades.

2. The arrangement aims to improve trust and reduce operational risks by involving a regulated bank in custody services.

3. This move follows Binance's $4.3 billion U.S. penalty for anti-money laundering failures and reflects a broader industry shift toward TradFi standards.

4. BBVA's involvement signals market maturity, as it holds about €772 billion in assets and has previously engaged in crypto services like Bitcoin and Ethereum trading.

5. The partnership highlights a trend where major banks are increasingly integrating with the crypto industry to combine traditional finance safety with digital asset innovation.