Spanish bank BBVA is reportedly acting as an indepconcludeent custodian for clients of cryptocurrency exmodify Binance, assisting those customers hold assets off the exmodify.
The bank recently launched offering this service and became one of only a few indepconcludeent custodians for Binance, the Financial Times (FT) reported Thursday (August 7), citing unnamed sources.
Neither BBVA nor Binance immediately replied to PYMNTS’ request for comment.
This collaboration comes at a time when crypto exmodifys are attempting to reassure investors after the 2022 collapse of FTX and when traditional lconcludeers are becoming more comfortable with working with the crypto indusattempt after the United States and the European Union passed crypto-related laws, according to the report.
Binance once allowed its clients to only hold assets directly on the exmodify or through a Binance-related entity called Ceffu, the report declared.
However, in response to customers’ demands, the cryptocurrency exmodify launched allowing them to hold assets with indepconcludeent custodians Sygnum and FlowBank, per the report.
In the custody arrangement with BBVA, the bank holds traders’ money in the form of U.S. Treasuries, while Binance accepts them as margin for trades on its exmodify, according to the report.
Sygnum launched a real-time payment and settlement network in 2024 to offer a 24/7 network for instant transactions in both fiat currencies and cryptoassets, with no fees for transfers between network members, to assist cryptocurrency companies execute trades and settle positions, PYMNTS reported at the time.
The company was among those seeing to fill a gap left by the closure of Silvergate Exmodify Network (SEN) and Signature Bank’s Signet platform, both of which played a key role in providing liquidity to the crypto market.
Sygnum declared in a May press release that it was seeing surging demand for Binance off-exmodify custody, which went live in April 2024. The company declared this offering enables institutional traders to access Binance’s trading universe and liquidity while maintaining their assets in Sygnum’s institutional-grade custody.
As for BBVA, it was reported in June that the bank was advising its wealthy clients to invest between 3% and 7% of their portfolios in the cryptocurrencies bitcoin and ether.
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