Binance said to team up with Spanish finance group for custody

Binance is working with Spain’s BBVA to let customers hold their assets off the cryptocurrency exchange.

BBVA is reportedly one of only a small number of independent custodians for Binance, the world’s largest cryptocurrency exchange by trading volume.

The move comes as Binance faces increased regulatory scrutiny globally and cryptocurrency exchanges work to boost investor confidence in fund safety after the 2022 collapse of FTX.

In February, US authorities fined Binance over US$4.3 billion for violations of anti-money laundering and sanctions laws, and founder Changpeng Zhao received a four-month prison sentence.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Independent custody partnerships emerge as exchanges face intensified compliance pressure

Binance’s partnership with BBVA reflects the crypto industry’s response to heightened regulatory demands that require sophisticated compliance frameworks.

U.S. regulators, including the SEC and CFTC, have pursued extensive enforcement actions against crypto entities, with cryptocurrency exchange compliance becoming crucial for maintaining industry trust 1.

Exchanges must now implement comprehensive Anti-Money Laundering (AML) and Know Your Customer (KYC) processes, along with ongoing transaction monitoring to identify suspicious activities 1.

The regulatory scrutiny has intensified following security breaches and compliance failures across the industry, making partnerships with regulated financial institutions an attractive risk mitigation strategy.

Non-compliance can result in severe penalties and reputational damage, as demonstrated by Binance’s own $4.3 billion fine for violating federal anti-money laundering laws.

2️⃣ Traditional banks capitalize on regulatory clarity to enter crypto custody market

BBVA’s role as an independent custodian aligns with a broader trend of traditional banks expanding into digital asset services following recent regulatory approvals.

U.S. federal banking regulators withdrew previous restrictions on banks’ digital asset engagement in 2025, with the OCC, FDIC, and Federal Reserve clarifying that banks can provide custody and payment services for cryptocurrencies 2.

The OCC’s Interpretative Letter 1184 specifically confirms that national banks can provide cryptocurrency custody services, including using sub-custodians, while maintaining proper risk management and fiduciary obligations 3.