Binance is taking another step towards damage control by teaming up with the BBVA. Spain’s Second bank. The new arrangement allows customers to post the US Department of Treasury as margins. the It’s clear When trying to isolate the user fund from Exchange risk, it is shown that Binance is trying to clean up the image.
Responding to ongoing scrutiny
This move follows intense regulatory pressure. After billions of dollars fines and ongoing questions about user fund safety last year, Binance has little room to loosen it. Collateral for traders who hold regulated banks appears to be a deliberate effort to rebuild trust without waiting for permission.
binance x bbva@binance Combining the team with the third largest bank in Spain, BBVA, to ensure that clients do not exchange assets as independent custodians.
Move The Move aims to rebuild the collapse of Trust Post-Ftx after Binance’s $4.3 billion fine in 2023.
Client funds are held by the BBVA in the US… pic.twitter.com/bq4fagohom-Narcos (@misternarcos) August 8, 2025
Traders keep their funds in the bank
The idea is simple. Users will deposit collateral directly with BBVA. These funds go to the US Treasury Department, and Binance accepts them as margins for the transaction. Exchanges never touch money. that’s right a Selection subject A transition from an era when platforms pooled client assets and moved behind the scenes.
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Traditional banks start to take the wheels
The BBVA is more than just an institution. the It’s deeply established in Europe’s It already offers crypto products in the financial system and Switzerland. By partnering with a bank of this size, Binance sends a message that he is willing to work within the system, at least on paper. this It adds to the slow trend of crypto companies that are leaning towards old-fashioned finance due to their structure.
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Timing is in line with policy momentum
Global regulators are ultimately taking custody rules for crypto. With the US european unionauthorities are considering how exchanges manage customer assets. This Binance BBVA placement occurs just like those conversations hit new gear. the It’s not a coincidence.
Layers of user safety
For everyday traders, this means one less thing to worry about. Instead of hoping Binance will maintain the solvent, they know that their collateral is locked in another bank account and supported by government bonds. If Binance gets into trouble, the funds should remain untouched. Such firewalls have been missing from the space for too long.
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Can this set a new standard?
Other platforms may take notes. If this model works, it could move the industry away from dangerous, self-supporting towards banking setups. The idea of splitting custody from a transaction is not new, but it is gaining traction rapidly as the market matures and compliance costs rise.
What’s next for Binance and BBVA
The big unknown is whether Binance will roll out this widely or continue to limit it. If the intake is strong, more banks will be able to enter the photo. For now, this is a test case. But if it sticks, it may reconstruct how crypto exchanges operate.
Binance is trying to play more cautiously, in the wake of regulatory blowbacks and industry meltdowns. By taking charge of BBVA as collateral, the It is trying to show that it can evolve into users and regulators. The interests are high, and this may be one of the more grounded moves that the exchange has been making for a long time.
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Key takeout
Binance has partnered with the BBVA to detain the US Treasury Department, which was used as transaction collateral, and separates customer funds from the exchange.
Regulatory pressures are driving changes following fines and concerns over Binance’s past user assets handling.
User funds are held directly in the BBVA and do not touch Binance, reducing counterparty risk and increasing user trust.
This partnership is consistent with global regulatory regulations regarding cryptocurrency custody, particularly in the US and the EU.
If successful, this bank support model could impact other exchanges to adopt safer asset management practices.
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