London, September 12, 2023 — As the debate on crypto regulation continues to shape the industry's future, HSBC, a global banking behemoth headquartered in London, is venturing further into the crypto realm by partnering with cryptocurrency custody tech firm, Fireblocks, informed sources suggest.
Fireblocks, renowned for cryptographic protection technologies such as multi-party computation (MPC), has previously navigated the challenges of crypto regulation, partnering with major banks. In early 2021, amidst evolving crypto regulations, the firm secured its position as the custody tech choice for BNY Mellon and also initiated a collaboration with BNP Paribas.
Although HSBC has yet to confirm these developments officially, Fireblocks abstained from commenting as well.
The broader banking industry’s tentative approach to cryptocurrencies can be largely attributed to the ongoing uncertainties in crypto regulation. The U.S., in particular, sees continuous legal tussles between crypto enterprises and regulators. This regulatory ambiguity may be offering financial powerhouses in regions like Europe and Asia an edge over their American contemporaries.
With an asset portfolio approximating $3 trillion, HSBC's Hong Kong branch, amidst this complex landscape of crypto regulation, provides its users with trading avenues for bitcoin (BTC) and ether (ETH) ETFs. However, the bank maintains a publicly cautious stance. A case in point, in July, HSBC's affiliate, Hang Seng Bank in Hong Kong, stated that crypto-licensed entities could open accounts but would be restricted to elementary banking functionalities.