Bitcoin Price Stays About $115,000 As Spain’s Banking Giant BBVA Partners With Binance To Provide Custody

Bitcoin price maintained its position above $115,000 on Friday as Binance, the world’s largest Bitcoin and crypto exchange, partners with Spain’s BBVA bank to provide third-party custody services, marking a significant step toward institutional-grade security.

The partnership enables Binance customers to store their assets in U.S. Treasury securities held by BBVA, Spain’s third-largest bank, which the exchange will accept as margin for trading. This arrangement effectively separates trading activities from asset custody, providing an additional layer of security for investors concerned about exchange risk.

The move comes as Binance continues to rebuild trust following its $4.3 billion settlement with U.S. regulators in 2023 over anti-money laundering violations. The exchange has been implementing stricter controls and clearer disclosures on fund management, including allowing clients to use third-party custodians such as Sygnum and FlowBank.

BBVA has been increasingly active in the Bitcoin and crypto sector, having launched crypto trading and custody services through its mobile app this year. The bank has also taken a bold stance by advising private clients to allocate up to 7% of their portfolios to Bitcoin and crypto, reflecting growing institutional confidence in crypto.

The custody arrangement addresses one of the primary concerns that emerged following the collapse of FTX in 2022, where customer funds were commingled with exchange operations. Under the new structure, if Binance were to face operational issues or regulatory challenges, customer funds would remain secure in Treasury securities under BBVA’s control.

This partnership represents a new standard for Bitcoin and crypto exchange security. The integration of traditional banking infrastructure with Bitcoin and crypto trading platforms could accelerate institutional adoption by providing a familiar and regulated framework.

The development comes amid accelerating corporate Bitcoin adoption, with the number of public companies holding Bitcoin on their balance sheets rising to over 200. Recent notable additions include Metaplanet’s purchase of 463 BTC worth $53.7 million and Smarter Web Company’s innovative $21 million Bitcoin-denominated convertible bond.

Market analysts suggest that the partnership between Binance and BBVA could set a precedent for similar arrangements between Bitcoin and crypro exchanges and traditional banks. The move effectively bridges the gap between conventional finance and Bitcoin, potentially attracting more institutional investors who have been hesitant to enter the Bitcoin market due to custody concerns.

Trading volumes across major Bitcoin and crypto exchanges have remained stable following the news, with Bitcoin price continuing to trade in the $115,000-$116,000 range. The market’s muted reaction suggests that institutional developments are becoming increasingly normalized as the Bitcoin and crypto industry matures.

This post Bitcoin Price Stays About $115,000 As Spain’s Banking Giant BBVA Partners With Binance To Provide Custody first appeared on Bitcoin Magazine and is written by Vivek Sen.

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