Binance partners with Spanish bank BBVA to allow customers to store assets outside of the exchange

According to the Financial Times, Binance is partnering with BBVA, a Spanish bank, to allow customers to hold their assets in custody at the bank rather than on an exchange. This is a new measure taken by Binance to appease investors after being fined a record breaking $4.3 billion by US authorities in 2023. BBVA, the third largest bank in Spain, has recently started serving Binance as one of the few independent custodians. This move aims to alleviate investors' concerns about the security of the exchange, especially after the FTX bankruptcy event in 2022. BBVA's brand recognition is higher than Binance's existing partners, which may enhance user trust. According to the cooperation arrangement, the funds of the traders will be deposited in BBVA in the form of US treasury bond, and Caian will accept these assets as trading margins.