BBVA joins Binance to provide regulated asset custody

Binance has partnered with BBVA, one of Spain’s largest banks, to provide independent custody services for customer funds, according to a Financial Times report published on Friday. Sources cited by the publication stated that the funds will be held in the form of U.S. Treasury securities at BBVA, and Binance will accept them as collateral for trading on its platform, thereby reducing counterparty risk.

The move comes amid declining trust in centralized crypto exchanges following the collapse of FTX and Binance’s own regulatory challenges. In addition to BBVA, Binance has formed similar custody partnerships with Switzerland’s Sygnum and FlowBank.

FT sources noted that BBVA has greater market recognition than other banking partners, which could help strengthen investor confidence.

Separately, Binance on Thursday launched a crypto-to-fiat conversion and direct withdrawal service to Mastercard for users in the European Economic Area and the United Kingdom, with near real-time availability. The service aims to simplify the withdrawal process to fiat currency for customers in these regions.