BBVA has entered into a partnership with Binance to enable off-exchange custody services for the crypto company’s customers, as reported by the Financial Times.
This collaboration aims to mitigate counterparty risk by allowing traders to securely store their cryptocurrency assets with BBVA, rather than on the exchange itself. This initiative seeks to enhance user confidence in Binance’s capability to safeguard funds, especially following the fallout from the 2022 collapse of the FTX exchange.
Binance, recognized as the largest cryptocurrency exchange globally, has faced its share of regulatory challenges, including a notable $4.3 billion settlement with the U.S. Department of Justice due to anti-money laundering violations. This situation also resulted in founder Changpeng “CZ” Zhao serving jail time.