key takeaways
- Binance is partnered with BBVA to offer off-extra custody of customers’ assets.
- Cooperation with BBVA follows regulator pressures and aims to strengthen confidence in crypto trading.
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Benance Assets, FT said on Friday, cited people with knowledge of custody.
Under the composition of custody, customers funds are BBVA in the Fund US tree, and binance accepts these trees as margin for trades on its exchange. In other words, Binance will not directly use or use the wealth of traders; These funds will be kept separately.
This arrangement is designed for the safety of investors and helps prevent FTX collapse, where customer funds are managed.
Binance has made an integrity effort to try to believe in trading in exchange since its high-profile settlement along with US regulators at the end of 2023 along with US regulators at the end of 2023.
Earlier last year, the firm began to allow customers to use independent custodians including Signum and Flobank in Switzerland. The new agreement with BBVA is expected to help investors win over the trust.
The BBVA, which is the authority second to offer retail crypto services in Spain in March, has been examined in the digital asset market. The bank recently rolled out bitcoin and ether trading through its mobile app for Spanish customers.
The motor also reflects the glorious access to the crypto-mongichal banks as the US and the European Union rules provide clear guidelines on custody, anti-manual laundering and investors safety.
Prior to clear Crypto rules, many traditional banks hesitated to connect with digital assets due to legal unwanted and compliance risks.
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