Binance has inked a partnership with Spain’s BBVA which enables customers to store their cryptocurrency assets off the exchange, marking a significant shift in how digital assets are safeguarded.
On Monday, two sources familiar with the agreement confirmed to the Financial Times (FT) that the bank has recently started to act as one of the few independent custodians for the cryptocurrency exchange platform.
Under the terms of the agreement, BBVA will hold customer funds, specifically in US treasuries, outside of Binance’s platform.
These assets will be accepted by Binance as margin for trading, but remain securely stored by the bank, sources told the FT.
This move marks a significant change in how digital assets are managed and protected.
It follows $4.3 million settlement by Binance with US regulators in 2022 over anti-money laundering violations, with its founder and chief executive Changpeng Zhao sentenced to four months in prison.
The charges included violating failing to implement an effective anti-money laundering (AML) programme and allowing transactions with sanctioned entities, including proscribed terrorist groups like Hamas and Al-Qaida.
By separating custody from exchange operations, Binance seeks to reassure users about fund safety, with a focus on institutional clients in particular who prefer regulated and risk-adverse assets.
BBVA’s reputation means institutional investors are more likely to trust the custody arrangement.
As one insider told the FT: “If you say BBVA, people are like ‘box tick, next’”.
The partnership comes after BBVA launched bitcoin and ether trading and custody services for its retail customers of legal age in Spain last month.
The Spanish bank, which received the green light for the move from the Spanish Securities and Exchange Commission (CNMV) in March this year, has been gradually rolling out the service over the past few weeks.
The move, which marks a significant step in the adoption of digital assets by traditional financial institutions, means that BBVA customers in Spain can now trade in bitcoin and ether through the BBVA app, which also includes the bank’s other financial services.
The bank has also encouraged wealthy clients allocate up to seven per cent of their portfolio to cryptocurrencies.
Clearer rules in the US and EU have made traditional banks more comfortable entering the crypto space, leading to more secure and compliant custody solutions.
At the end of July, The US passed the first major national cryptocurrency law aimed at establishing a clear regulatory framework for digital assets, marking a crucial moment for the cryptocurrency industry.
The law, called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act), aims to provide clarity for issuers of stablecoins in the US and abroad, while ensuring consumer protection and combating money laundering.
In July, Standard Chartered launched a fully integrated digital asset trading service for institutional clients, including corporations, investors and asset managers.
The London-headquartered bank said the move makes it the first global systemic bank to offer cryptoasset trading to institutional investors.
The offering includes spot trading of Bitcoin and Ether through the bank’s UK brand and will soon introduce trading of non-deliverable forwards (NDFs).
Last week, the bank announced the formation of Anchorpoint Financial, a joint venture with Animoca Brands and Hong Kong Telecommunications (HKT), to apply for a stablecoin issuer licence in Hong Kong.
The move positions Anchorpoint—a joint-venture with gaming developer Animoca Brands and telco HKT—as the first entity to formally initiate the licensing process under the city’s new stablecoin ordinance, which came into effect on 1 August 2025.
Last month, Lloyds Banking Group also partnered with Aberdeen Investments and Archax, a digital asset exchange regulated by the Financial Conduct Authority (FCA), to use tokenised assets as collateral for foreign exchange (FX).
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