HSBC, a prominent global banking giant headquartered in London, has reportedly joined forces with the cryptocurrency custody technology firm Fireblocks. Fireblocks specializes in cutting-edge cryptocurrency security solutions, including multi-party computation (MPC), media reports said.
Notably, even before this collaboration, Fireblocks had already established its expertise in working with major financial institutions. In early 2021, the firm was selected as the preferred custody technology provider for BNY Mellon, and it maintains a partnership with BNP Paribas.
HSBC has not provided any comments on this matter as of the time of publication. Similarly, Fireblocks has chosen not to offer a comment at this juncture.
The allure of cryptocurrencies among major banks has been tempered by the cloud of regulatory uncertainty that surrounds digital assets, particularly in the United States, where legal battles between regulators and crypto companies persist. This lack of regulatory clarity arguably places financial institutions in regions like Europe and Asia at an advantage over their American counterparts.
HSBC, boasting approximately $3 trillion in assets, already allows customers of its Hong Kong branch to engage in trading bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs).
In June, HSBC Hong Kong became the first local financial institution to allow its customers to buy and sell Bitcoin and Ethereum ETFs.
In March, HSBC Holding reportedly purchased Silicon Valley Bank UK Limited for £1 ($1.20). Silicon Valley Bank (SVB) was shut down by the financial regulators of California after it faced liquidity issues and venture capital funds pulling their investments from the bank.
