Binance and BBVA Launch US Treasury-Backed Crypto Custody
Binance has strengthened its crypto custody offering by partnering with Spain’s BBVA to hold customer assets as US Treasuries in an off-exchange custody service separate from its trading operations and usable as margin. This crypto custody arrangement follows earlier third-party deals with Sygnum and FlowBank and responds to heightened regulatory pressure after the FTX collapse and Binance’s $4.3 billion AML penalty. Binance also recently launched near-real-time crypto-to-fiat withdrawals to Mastercard for European users. By involving a reputable bank, Binance aims to boost asset protection, regulatory compliance and institutional confidence in the crypto market.
Bullish
Partnering with BBVA and backing custody with US Treasuries significantly reduces counterparty risk and demonstrates strong regulatory compliance. In the short term, this boost in trust could drive higher trading volumes on Binance and increase demand for major cryptocurrencies. Long term, bank-grade custody solutions pave the way for broader institutional adoption and stable capital inflows, underpinning sustained bullish market momentum.