Binance Partners with Spanish Bank BBVA for Independent Crypto Custody Services
- BBVA has become an independent custodian for Binance, offering users greater asset security.
- The Spanish bank holds trader assets in the US Treasuries to mitigate exchange risk.
- Partnership addresses investor concerns after the FTX collapse in late 2022.
Binance has secured Spanish bank BBVA as an independent custodian for customer assets. The partnership allows Binance customers to hold their cryptocurrency assets with the third-largest Spanish bank rather than directly on the exchange platform.
As per the FT, the custody arrangement comes as cryptocurrency exchanges work to address investor fears about trading venue security following the FTX collapse in late 2022. Sam Bankman-Fried’s exchange failure left customer funds trapped in bankruptcy proceedings, prompting traders to seek independent custody solutions away from exchange platforms.
BBVA Provides Enhanced Due Diligence Credibility
Sources familiar with the arrangement indicate that BBVA offers greater name recognition compared to Binance’s existing custody partners. The bank’s reputation simplifies due diligence processes for institutional investors evaluating whether to use Binance’s trading …
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Binance Partners with Spanish Bank BBVA for Independent Crypto Custody Services
- BBVA has become an independent custodian for Binance, offering users greater asset security.
- The Spanish bank holds trader assets in the US Treasuries to mitigate exchange risk.
- Partnership addresses investor concerns after the FTX collapse in late 2022.
Binance has secured Spanish bank BBVA as an independent custodian for customer assets. The partnership allows Binance customers to hold their cryptocurrency assets with the third-largest Spanish bank rather than directly on the exchange platform.
As per the FT, the custody arrangement comes as cryptocurrency exchanges work to address investor fears about trading venue security following the FTX collapse in late 2022. Sam Bankman-Fried’s exchange failure left customer funds trapped in bankruptcy proceedings, prompting traders to seek independent custody solutions away from exchange platforms.
BBVA Provides Enhanced Due Diligence Credibility
Sources familiar with the arrangement indicate that BBVA offers greater name recognition compared to Binance’s existing custody partners. The bank’s reputation simplifies due diligence processes for institutional investors evaluating whether to use Binance’s trading …
The post Binance Partners with Spanish Bank BBVA for Independent Crypto Custody Services appeared first on Coin Edition.
Read More