Binance teams up with Spain’s BBVA bank to offer secure crypto custody with added protection for users.
- BBVA to hold Binance user funds using U.S. Treasurys
- New custody model adds trust after FTX and WazirX incidents
- Move could help attract institutional investors to crypto
Why Binance Is Working With BBVA
Binance has joined forces with BBVA, a major Spanish bank, to protect user funds. This means customers can now keep assets with a trusted financial institution, rather than just on the exchange. Those funds are held in U.S. Treasurys, managed by BBVA. Binance then uses those as margin for trades. This lowers the risk that users will lose funds if something goes wrong on the platform.
Restoring Confidence After Past Failures
This move follows several serious problems in the crypto world. In 2022, the collapse of FTX froze billions of dollars in user assets. More recently, WazirX, an exchange once linked to Binance, blocked withdrawals for 16 million users after a hack. Many lost access to their money. By allowing a major bank to manage custody, Binance hopes to avoid similar failures and restore trust among users.
Traditional Banks Enter the Crypto Space
This deal is part of a bigger trend. Traditional banks like BBVA, Sygnum, and FlowBank are starting to work with crypto firms. These banks bring experience, trust, and government regulation. For example, Binance believes BBVA’s strong reputation adds a new layer of security.
Helping Larger Investors Feel Safe
This kind of custody setup could also attract big investors like hedge funds. Institutional investors want stronger protections and supervised storage. By working with traditional banks, Binance is trying to meet those needs and bring more serious money into crypto markets.
New Withdrawal Features for Europe
In another move, Binance launched a new crypto-to-fiat withdrawal feature for European users. It allows users in the EU and UK to convert crypto back to cash and move it to their Mastercard accounts almost immediately. These improvements come as Binance prepares to follow new European crypto rules under MiCA.
Source: cointelegraph.com
