Binance is working with BBVA to allow customers to hold their assets off-exchange, according to the Financial Times.
Spanish and Latin American bank BBVA has recently taken on a role as one of a few independent custodians for clients of the world’s largest crypto exchange, the FT reported on Friday, citing two people familiar with the arrangement.
The move is reportedly designed to help reassure investors following Binance’s record $4 billion fine by U.S. authorities in November 2023 for failing to prevent alleged money laundering, fraud, and sanctions violations. Crypto traders have been seeking to mitigate the risk of holding assets on crypto trading platforms in general following the FTX debacle in 2022, which left billions of dollars trapped in bankruptcy proceedings.
The BBVA custody setup keeps traders’ funds in U.S. Treasuries at the bank, which Binance then accepts as trading margin, one of the people said, adding that the arrangement helps “mitigate a hypothetical FTX 2.0.” It creates a barrier between trading and custody that is standard practice in traditional finance to reduce counterparty risk, but not common in crypto.
The collaboration may also signal a growing readiness among traditional lenders to strengthen ties with the crypto sector, boosted by the Trump administration’s strong backing of the industry in the U.S. and the rollout of MiCA regulations in the EU.
One source said the Spanish bank carries greater “name recognition” than Binance’s current partners. “If you say BBVA, people are like ‘box tick, next’,” the person added, referring to the due diligence process when deciding whether to use the exchange.
In January 2024, Binance began letting its larger clients hold their assets at independent custodians like Sygnum and FlowBank to cut counterparty risk. Binance traders had previously been restricted to keeping their assets on the exchange or via Binance’s custody partner Ceffu, which the Securities and Exchange Commission described as a “rebranded Binance entity.”
BBVA has been expanding its crypto activity in recent months, announcing the rollout of bitcoin and ether trading and custody services in July. The bank has also advised its wealth clients to invest 3% to 7% of their portfolios in cryptocurrencies.
The Block reached out to Binance and BBVA for comment.
Crypto platforms are increasingly turning to off-exchange custody
However, Binance is not the only crypto platform looking at such off-exchange solutions, with Deribit, OKX, and Bitget also announcing similar plans in recent years.
In February, Deribit — set to be acquired by Coinbase — allowed BitGo and Copper clients to trade spot and derivatives on the exchange while their assets were secured off-exchange in qualified custody and automatically settled. The launch enables users to access Deribit’s options and futures trading features without pre-funding their strategies.
In November 2024, OKX partnered with Komainu to provide an off-exchange custody solution for institutional clients. The previous year, Bitget had integrated Copper’s ClearLoop network, offering off-exchange crypto trading to institutions.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
