Binance, the largest exchange of cryptocurrencies by negotiated volume, requested the third largest bank in Spain, BBVA, to provide custody services, since it seeks to improve the protection for customers by isolating its assets of any interruption that may occur to the commercial platform, Financial Times reported.
The custody agreement separates the commercial activities from the funds that support transactions by parking customer assets in the United States Treasury bonds held by BBVA. Binance then accepts the treasure bonds as a margin for trade, said the FT, citing people familiar with the process. If Binance failed, the funds would remain insurance in the treasure bonds under the control of BBVA.
The treatment distance the exchange of your previous model of maintaining user funds internally. The change follows the growing pressure on encryption exchanges to isolate the custody of the negotiation, especially after the collapse of FTX in 2022, which left the funds of the frozen and destroyed users the confidence in the entire market. Other adopted exchange measures include reservations, a cryptographic method to prove that customer funds are in their wallets.
Binance, which paid a fine of $ 4.3 billion last year to US regulators. For failures against money laundering, it has allowed customers to use third -party custodians, including Sygnum and Flowbank.
BBVA has been deepening cryptography. Only this year, he launched Custody and Trade services of Crypt through its mobile application and advised private clients to assign up to 7% of portfolios in Bitcoin.
and ether (Eth).
