Crypto exchange Binance implemented a new model for storing user funds, transferring assets to independent custodians and placing them in U.S. Treasury bonds.
Binance signed an agreement with BBVA, one of the largest banking institutions in Spain, under which the bank will act as an independent custodian for the exchange, Financial Times reports, citing internal sources.
According to the agreement, BBVA will be responsible for holding a portion of client funds in the form of U.S. Treasury bonds, which Binance accepts as collateral for trading operations. According to Financial Times sources, this approach will help minimize counterparty risk and meet growing institutional client demands for asset protection.
Binance’s shift toward a bank-based custody model is a response to market demands for increased reliability and transparency following the collapse of FTX and Genesis. According to sources, assets remain under clients’ control and can be liquidated without Binance’s involvement in the event of its default. This approach reduces dependence on centralized platforms and ensures protection in stress scenarios. In addition to BBVA, Binance also appointed Sygnum Bank and FlowBank as external custodians.
Alongside these infrastructure changes, Binance introduced a new mechanism for instant fiat withdrawals from crypto accounts for customers in the EU and the U.K. Withdrawals are processed in real time to Mastercard cards, further enhancing customer service and accessibility of funds.
In 2024, the number of Binance users surpassed 200 million, with over $100 billion worth of assets held on the platform.
Сообщение Binance Changes User Asset Custody Structure появились сначала на CoinsPaid Media.
