According to two persons with knowledge of the situation, HSBC, one of the biggest banks in the world with headquarters in London, is collaborating with the company Fireblocks, a leader in bitcoin custody technology.
Prior to this agreement, Fireblocks had experience dealing with major institutions and specialised in cryptocurrency safekeeping technology like multi-party computation (MPC). Fireblocks started working with BNY Mellon and BNP Paribas in early 2021.
The regulatory ambiguity around digital assets has tempered large banks’ enthusiasm for cryptocurrencies. This is especially true given the scenario in the United States, where regulators are engaged in a legal battle with cryptocurrency companies. Financial institutions in regions like Europe and Asia may have an advantage over their American counterparts due to this lack of transparency.
Customers of HSBC’s Hong Kong office are able to invest in exchange-traded funds for bitcoin (BTC) and ether (ETH), which have a market cap of about $3 trillion.
In July, the HSBC-owned Hang Seng Bank, also in Hong Kong, stated that while licenced crypto firms can open a bank account, they will only be able to receive a “simple” one. Despite this, the bank still appears to be somewhat wary about cryptocurrencies, at least publicly.