Overview

• Under the BBVA partnership, traders’ funds will be held off-exchange in U.S. Treasuries managed by Spain’s third-largest bank.
• Binance will accept those Treasury holdings as margin for customer trades on its platform.
• The deal follows Binance’s recent expansion of custodial partners to include Switzerland’s Sygnum and FlowBank to diversify counterparty risk.
• Demand for third-party custody surged after the 2022 FTX collapse revealed dangers of commingled funds without external oversight.
• The move underscores a broader industry shift toward regulated banking partnerships and transparent collateral management.