Binance has partnered with Spanish banking giant BBVA to offer off-exchange custody services, allowing customers to store digital assets directly with the bank instead of on the platform. According to Financial Times reports citing insiders, client funds will be held in U.S. Treasuries at BBVA, which Binance then accepts as margin for trades. This arrangement aims to prevent counterparty risks and avoid a hypothetical "FTX 2.0" scenario by ensuring customer assets remain segregated and independently managed.
The move responds to heightened trader demand for third-party custody following FTX's 2022 collapse, where commingled customer funds led to $8 billion in losses. BBVA—Spain's third-largest bank—joins Binance's existing custody partners Sygnum and FlowBank. The partnership leverages BBVA's regulatory compliance and brand trust, with one insider noting due diligence is streamlined because "people are like 'box tick, next'" when seeing the bank's involvement.
This collaboration aligns with BBVA's expanding crypto services, including Bitcoin and Ether trading/custody for Spanish retail clients since July 2025 and advising private clients to allocate up to 7% to crypto. It also reflects broader institutional adoption fueled by clearer U.S. and EU regulations.