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The cryptocurrency exchange Binance has adopted a new strategy for safeguarding user assets, moving funds to independent custodians and investing them in U.S. Treasury bonds.
Binance has entered into a partnership with BBVA, one of Spain’s foremost banking entities, whereby the bank will serve as an independent custodian for the exchange, as reported by the Financial Times, citing internal sources.
Under the terms of the agreement, BBVA will hold a segment of client assets in U.S. Treasury bonds, which Binance accepts as collateral for trading activities. Sources from the Financial Times indicate that this method will help reduce counterparty risk and address the increasing demands from institutional clients for asset security.
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Binance’s transition to a banking-oriented custody model is a reaction to market demands for enhanced reliability and transparency following the failures of FTX and Genesis. Sources indicate that assets will remain under the control of clients and can be liquidated independently of Binance in the event of its default. This strategy diminishes reliance on centralized platforms and guarantees protection during stressful situations. In addition to BBVA, Binance has also designated Sygnum Bank and FlowBank as external custodians.
In conjunction with these infrastructural modifications, Binance has launched a new system for immediate fiat withdrawals from crypto accounts for users in the EU and the U.K. Withdrawals are executed in real-time to Mastercard cards, further improving customer service and the accessibility of funds.
By 2024, the number of users on Binance exceeded 200 million, with assets valued at over $100 billion held on the platform.
Сообщение Binance Changes User Asset Custody Structure появились сначала на CoinsPaid Media.
