Spanish Bank BBVA Said to Offer Off-Exchange Custody to Binance Customers: FT
Main Idea
Binance has partnered with Spanish bank BBVA to provide off-exchange custody services for its customers, reflecting a broader trend of crypto exchanges separating custody from trading operations.
Key Points
1. Binance has enlisted BBVA, Spain's third-largest bank, to offer custody services to its traders.
2. The move aligns with increasing regulatory pressure on crypto exchanges to segregate custody from trading, especially after the FTX collapse in 2022.
3. BBVA has been expanding its involvement in the cryptocurrency sector, including offering bitcoin personal finance services.
4. Binance previously faced a $4.3 billion penalty from U.S. regulators for compliance violations.
Description
Binance, the largest cryptocurrency exchange by volume traded, enlisted Spain’s third-largest bank, BBVA, to provide custody services as it looks to improve protection for customers by isolating their assets from any disruption that might occur to the trading platform, the Financial Times reported. The custody arrangement separates trading activities from the funds backing the transactions by parking client assets in U.S. Treasuries held by BBVA. Binance then accepts the Treasuries as margin for...
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