Binance, the largest cryptocurrency grant by volume negotiated, has enlisted the third largest bank in Spain, BBVA, to provide childcare services while seeking to improve customer protection by isolating their assets of any disturbance that could occur on the commercial platform, the Financial Times reported.
The custody arrangement separates the negotiating activities of funds which support the parking transactions of customer assets in the US Treasury Bonnes held by BBVA. Binance then accepts treasury bills as a margin of trading, said the FT, citing people familiar with the process. If the binance was to fail, the funds would remain safe in treasury bills under the control of BBVA.
The distances agreement The exchange of its previous model for holding internal user funds. The change follows the mounting pressure on crypto exchanges to isolate the negotiation custody, in particular after the collapse of FTX in 2022, which left the funds of frozen users and broken confidence through the market. Other exchange measures adopted include proof of reservations, a cryptographic method to prove that customers’ funds are in their portfolios.
Binance, who paid a penalty of 4.3 billion dollars last year to American regulators for anti-white chess, has since allowed customers to use third-party guards, including Sygnim and Flowbank.
BBVA deepened in the crypto. This year, he deployed trading and crypto trading services via his mobile application and advised private customers to allocate up to 7% of portfolios in Bitcoin
and ether (Eth).
