Binance is collaborating with Spanish bank BBVA to enable customers to store their assets off the cryptocurrency exchange, the Financial Times reported on Friday. BBVA is said to be one of only a small number of independent custodians working with Binance, according to two sources familiar with the matter. The arrangement aims to provide additional security for customer funds at a time when crypto exchanges face growing regulatory pressure.
The partnership comes amid heightened scrutiny of Binance, the world’s largest digital asset exchange, and broader efforts in the crypto industry to restore investor confidence following the 2022 collapse of rival exchange FTX. By using independent custodians, exchanges can help reassure clients that their holdings remain secure and segregated from the platform’s operational risks.
BBVA declined to comment on current or potential clients but confirmed it already offers cryptocurrency custody services for individual customers in certain markets, such as Turkey, and for institutional investors in Switzerland. Binance did not respond to requests for comment.
The move follows significant legal troubles for Binance. In February, U.S. authorities fined the company more than $4.3 billion for violations of anti-money laundering and sanctions laws, citing weaknesses in its internal controls. Founder and former CEO Changpeng Zhao was sentenced to four months in prison as part of the settlement, underscoring the ongoing challenges facing the exchange as it seeks to maintain trust and regulatory compliance.