Global banking giant HSBC is reportedly partnering with Fireblocks, a firm specializing in cryptocurrency custody technology. The London-based bank, which manages approximately $3 trillion in assets, is venturing further into the digital asset space despite ongoing regulatory uncertainties, according to sources familiar with the matter.
Fireblocks is known for its advanced secure storage solutions for cryptocurrencies, utilizing technologies such as multi-party computation (MPC). The firm has previously collaborated with other major banks including BNY Mellon (NYSE:BK) and BNP Paribas (OTC:BNPQY).
The partnership comes at a time when the enthusiasm of large banks towards cryptocurrencies has been tempered by regulatory uncertainties, particularly in the U.S. where legal battles between regulators and crypto companies are ongoing. This lack of clarity is arguably providing an edge to financial institutions in Europe and Asia over their American counterparts.
As of Tuesday, neither HSBC nor Fireblocks had responded to requests for comment regarding the collaboration.
Despite the partnership, HSBC has maintained a cautious public stance towards cryptocurrencies. The bank currently allows customers of its Hong Kong branch to trade Bitcoin (BTC) and Ether (ETH) exchange-traded funds. However, in July, HSBC-owned Hang Seng Bank in Hong Kong stated that while licensed crypto companies could open bank accounts, they would only be eligible for "simple" accounts. This suggests a degree of caution on the part of the bank as it navigates the evolving landscape of digital assets.
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