Binance Partners with BBVA to Secure Customer Funds Amid Regulatory Scrutiny

TLDR

Binance teams up with BBVA to store user funds securely, enhancing crypto safety and trust.
BBVA’s role as custodian helps Binance address regulatory concerns and improve compliance efforts.
The partnership signals Binance’s focus on transparency and rebuilding its reputation with investors.

Binance, the world’s largest cryptocurrency exchange, has entered a partnership with Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) to provide a new level of security for its customers. This collaboration allows Binance users to store their digital assets with BBVA, rather than keeping them directly on the exchange.

The move comes as Binance seeks to rebuild trust with investors and address the concerns raised by regulatory authorities, especially after facing a massive fine from U.S. regulators in 2023.

Binance is partnering with BBVA, Spain’s third-largest bank, to offer offline custody services. Client assets will be held at BBVA in the form of U.S. Treasuries and used by Binance as collateral. Sources say the structure aims to prevent another “FTX-like” collapse. Neither…
— Wu Blockchain (@WuBlockchain) August 8, 2025

BBVA to Act as Independent Custodian for Binance Customers

Table of Contents

Under this new arrangement, BBVA will serve as an independent custodian, a trusted third party responsible for safeguarding Binance users’ funds. This shift means that, instead of keeping funds within Binance’s exchange infrastructure, customers can now opt to have their assets stored at the bank. As one of Spain’s largest and most innovative financial institutions, BBVA is highly regulated, ensuring an added layer of protection for customers.

Notably, the partnership aims to reduce risks associated with storing assets directly on the exchange. By having their funds secured with BBVA, Binance customers are assured that their assets will remain protected even in the event of exchange-related problems. This includes potential issues such as regulatory actions, hacks, or other financial difficulties that might affect Binance’s operations.

A Strategic Move to Improve Trust and Compliance

The deal with BBVA reflects Binance’s ongoing efforts to restore its reputation following a 2023 fine of $4.3 billion. U.S. regulators had accused the company of failing to monitor its platform for suspicious activities, including money laundering. In response to these allegations, Binance has taken steps to overhaul its operations and improve compliance with regulatory standards.

By collaborating with BBVA, Binance aims to show that it is committed to transparency and security. The bank’s role as a custodian not only provides additional safety for crypto users but also signals Binance’s intention to adhere to more stringent financial regulations. With BBVA’s established track record in the banking industry, it offers a sense of security that was lacking when crypto assets were held entirely on exchanges like Binance.

Impact on the Crypto Market and Investor Confidence

The partnership between Binance and BBVA is seen as a significant step towards building trust in the cryptocurrency market. As a well-regulated financial entity, BBVA offers a higher level of credibility compared to a typical crypto exchange. The bank’s compliance with local and international financial rules reassures investors that their funds will remain safe.

Furthermore, this move could have a broader impact on the crypto market. By integrating traditional banking safeguards with digital asset exchanges, Binance may help attract more cautious investors to the space. The involvement of a reputable bank like BBVA may encourage people who have been hesitant about cryptocurrency to reconsider their stance, especially when it comes to the safety of their funds.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: