New deal with Spanish banking giant aims to rebuild user trust after FTX fallout
In a major step toward increasing investor confidence, Binance has partnered with Spain’s BBVA bank to provide independent custody services for customer funds. The partnership represents a significant pivot toward traditional financial safeguards in the wake of widespread skepticism around centralized crypto exchanges.
The collapse of FTX in 2022, which left billions in user funds inaccessible, has prompted industry-wide calls for more secure and transparent custodial frameworks. Binance’s collaboration with BBVA, one of Spain’s largest and most trusted banks, introduces a regulated and bank-backed custody option, aimed at protecting user assets from potential internal failures.
“Binance is actively working to align crypto services with traditional financial accountability,” said BITX analyst. “Partnerships like this one are critical for restoring user trust.”
The move is part of a broader custody shift by Binance, which now also works with Switzerland’s Sygnum Bank and FlowBank to handle parts of its custodial operations.
Entrusting customer assets to a globally recognized financial institution like BBVA introduces a new layer of trust. According to sources, BBVA was selected not only for its capacity but for its strong brand reputation within the European market.
“BBVA has name recognition that helps ease concerns from institutional and retail users alike,” one source noted.
Binance Expands Fiat Off-Ramping for EU Users
In a parallel move, Binance has also rolled out a new crypto-to-fiat withdrawal service via Mastercard for users in the European Economic Area and the UK, enabling faster access to funds. The service allows near-instant conversion and withdrawal to bank cards.
The shift toward regulated custody may help Binance weather increasing regulatory scrutiny, especially after distancing itself from WazirX — an Indian exchange that recently froze user withdrawals following a breach.
As centralized exchanges face growing pressure to secure funds responsibly, Binance’s partnership with BBVA may set a new precedent for blending crypto innovation with traditional finance security.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.