According to CoinDesk, London-based HSBC, one of the largest banks in the world, is working with cryptocurrency custody technology firm Fireblocks. The company specializes in cryptocurrency safekeeping technologies such as multi-party computation (MPC) and has experience working with big banks. In early 2021, Fireblocks became the custody technology provider for BNY Mellon and also works with BNP Paribas. HSBC did not respond to requests for comment, and Fireblocks declined to comment.
The enthusiasm of big banks towards crypto has been dampened by regulatory uncertainty around digital assets, particularly in the U.S., where regulators are fighting with crypto companies in court. This lack of clarity is arguably allowing financial institutions in places like Europe and Asia to gain an advantage over their American peers. HSBC, which holds about $3 trillion in assets, allows customers of its Hong Kong branch to trade in bitcoin (BTC) and ether (ETH) exchange-traded funds. However, the bank remains somewhat cautious of crypto; in July, HSBC-owned Hang Seng Bank in Hong Kong stated that while licensed crypto companies can open a bank account, they will only be able to get a 'simple' one.
