Binance has entered a partnership with BBVA, one of Spain's largest banks, to provide independent custodial services for customer funds, as reported by the Financial Times. This initiative responds to the decreased trust in centralized crypto exchanges following events like the FTX collapse. The collaboration allows Binance users to store their assets with BBVA, enhancing security through bank-backed collateral. In addition to BBVA, Binance has also teamed up with Sygnum and FlowBank in Switzerland for similar custody services. This strategic move aims to restore investor confidence and bridge the gap between institutional investors and the crypto ecosystem. Moreover, Binance launched a service facilitating crypto-to-fiat conversions and direct withdrawals to Mastercard for European users, enhancing the ease of off-ramping funds. The need for secure custody solutions has arisen from recent incidents where exchanges restricted customer access, creating regulatory scrutiny. This partnership with reputable banks signifies a positive shift toward safer fund management in the crypto space.

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