HSBC Partners with Fireblocks for Cryptocurrency Custody Tech

HSBC Partners with Fireblocks for Cryptocurrency Custody Tech

HSBC, a global banking giant headquartered in London, is reportedly collaborating with cryptocurrency custody technology company Fireblocks, as per information from two sources with knowledge of the situation.

Fireblocks is known for its expertise in cryptocurrency custody technologies, including multi-party computation (MPC). Prior to this collaboration with HSBC, the company had already established partnerships with major banks. 

In early 2021, Fireblocks was selected as the preferred custody technology provider for BNY Mellon, and it also maintains a relationship with BNP Paribas.

Major banks have shown interest in the cryptocurrency space, but regulatory ambiguity surrounding digital assets has tempered their enthusiasm. The United States, in particular, has witnessed regulatory disputes between authorities and crypto firms, contributing to the uncertainty. 

The lack of regulatory clarity may be giving financial institutions in regions like Europe and Asia a competitive edge over their American counterparts.

HSBC, a bank with approximately $3 trillion in assets, permits customers using its Hong Kong branch to engage in trading Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).

Nonetheless, the bank appears to maintain a somewhat reserved stance on cryptocurrencies, especially in the public eye. In July, Hang Seng Bank, owned by HSBC and also based in Hong Kong, stated that licensed cryptocurrency firms could open bank accounts but would be limited to obtaining "basic" accounts.

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