To raise trust among users after the collapse of FTX, Binance has begun working with the Bank of Spain BBVA. This is to provide external custody services for Bitcoin (BTC) and other digital assets.
This alliance allows customers to protect their funds from Binancein a regulated, traditional environment.
Sources close to the contract show that Spain’s third largest bank, BBVA, is now serving as one of the few independent castodes working with popular cryptocurrency exchanges. The measure seeks to address concerns from investors who prefer to protect their funds to traditional financial institutions after the collapse of FTX in 2022.
Therefore, according to sources close to the contract, the user fund is protected by the BBVA. Meanwhile, Binance accepts these assets as margins that operate on its platform.
Over the past few months, the BBVA has strengthened its commitment to cryptocurrency. As reported by Cryptonotics, in March the banking institution reported that Spain’s National Securities and Markets Commission (CNMV) had approved a service in July that purchased, sold and stored Bitcoin and Ether (ETH), which were made available directly from banks’ mobile apps.
This collaboration comes after Binance’s legal challenges. In 2023, US authorities imposed a $4.3 billion fine for exchange To promote suspected operations related to money laundering. Founder Changpeng Zhao was released in September 2024 to four months in prison. Since then, the company has significantly reduced its domestic presence.
Traditional banking approaches to cryptocurrency also caters to international contexts that are more favorable for the industry, thanks to recent regulatory advances, especially in the US.
For example, Donald Trump signed an executive order to create a strategic Bitcoin reserve and expressed the Genius Act (guiding and establishing US national innovation), the first US law to regulate the issuance of sable coins. The project received widespread bipartisan support in the Senate and House, and ultimately received the President’s rubric.
Additionally, the president will implement actions against banks that refuse financial services to cryptocurrency companies and conservative organizations for political reasons.