Major cryptocurrency exchange Binance partners with Spain's second-biggest bank, BBVA, to safeguard margin positions for cryptocurrency traders in government bonds.
The crypto market took a significant step forward with the announcement of Binance's partnership with Banco Bilbao Vizcaya Argentaria (BBVA), Spain's second-largest bank by assets. This collaboration marks a clear sign that traditional financial institutions are no longer just observing the crypto space; they are actively seeking ways to integrate where traditional finance (TradFi) safety meets digital asset growth.
Under the terms of the agreement, traders can keep collateral such as U.S. Treasuries with BBVA, which Binance will accept as margin for trades. This arrangement, known as custody, means that funds remain with the bank rather than the exchange, reducing counterparty risk and strengthening trust in trading venues.
BBVA obtained a MiCA license from the country’s financial markets regulator in March, allowing it to offer Bitcoin and Ethereum trading and custody to retail clients. Over the past year, BBVA has deepened its crypto footprint, becoming the first traditional bank in Spain to offer such services.
Pauline Shangett, chief strategy officer at non-custodial crypto exchange ChangeNOW, stated that this partnership is one of the clearest signs yet that crypto market infrastructure is maturing to TradFi standards. The deal potentially places one of Spain's biggest banks, BBVA, at the center of Binance’s custody network, as it holds about €772 billion in assets (US$835 billion).
The move is part of a broader trend among major global crypto exchanges to expand their use of independent custodians. This shift is aimed at rebuilding trust after the collapse of FTX and other similar incidents. Han Qin, CEO of Jarsy, noted that a shift in how crypto platforms manage risk and trust is underway.
By holding client collateral in highly liquid, low-risk instruments such as U.S. Treasuries, Binance reduces exposure to exchange operational risks and brings crypto trading margins closer to the same protections as traditional derivatives markets. This arrangement increases institutional trust and signifies greater maturity in the crypto market, addressing past scandals and regulatory concerns.
The partnership between Binance and BBVA follows Binance's $4.3 billion U.S. penalty for anti-money-laundering failures in 2023. Parking crypto margin in U.S. Treasuries with a regulated bank is as close as you get to a safety net in the crypto industry. The custody of traders' margin in U.S. Treasuries by BBVA introduces a level of segregation and safety that crypto venues have historically lacked.
In essence, this arrangement signals a structural shift in crypto trading—moving towards traditional finance safeguards, institutional-grade custody, and clearer separation of client assets to foster greater trust and sustainable growth in the market. The demand for independent custody, driven by the FTX-induced need to rebuild trust, is a testament to the market's evolution and maturity.
- The partnership between Binance and BBVA signifies a structural shift in crypto trading, moving towards traditional finance safeguards and institutional-grade custody.
- BBVA, by holding client collateral in highly liquid, low-risk instruments like U.S. Treasuries, helps reduce Binance's exposure to exchange operational risks.
- This arrangement increases institutional trust and signifies greater maturity in the crypto market, addressing past scandals and regulatory concerns.
- The deal potentially places one of Spain's biggest banks, BBVA, at the center of Binance’s custody network, as it holds about €772 billion in assets.
- The partnership between Binance and BBVA is one of the clearest signs yet that crypto market infrastructure is maturing to TradFi standards.
- Over the past year, BBVA has deepened its crypto footprint, becoming the first traditional bank in Spain to offer Bitcoin and Ethereum trading and custody to retail clients.
- The move to park crypto margin in U.S. Treasuries with a regulated bank like BBVA introduces a level of segregation and safety that crypto venues have historically lacked.
