Banking Powerhouse HSBC Working With Crypto Custody Firm Fireblocks: Sources

Fireblocks, which specializes in cryptocurrency safekeeping technologies such as multi-party computation (MPC), already works with BNY Mellon and BNP Paribas.

AccessTimeIconSep 12, 2023 at 3:07 p.m. UTC
Updated Sep 15, 2023 at 3:19 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

London-based HSBC, one of the largest banks in the world, is working with cryptocurrency custody technology firm Fireblocks, according to two people familiar with the matter.

Fireblocks specializes in cryptocurrency safekeeping technologies such as multi-party computation (MPC) and, even before this partnership, had experience working with big banks. Back in early 2021, Fireblocks became the custody technology provider of choice for BNY Mellon, and it also works with BNP Paribas.

HSBC didn’t respond to requests for comment by publication time. Fireblocks declined to comment.

The enthusiasm of big banks towards crypto has been dampened by regulatory uncertainty around digital assets. This is particularly thanks to the situation 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 win an advantage over their American peers.

HSBC, which holds about $3 trillion in assets, lets customers of its Hong Kong branch trade in bitcoin (BTC) and ether (ETH) exchange-traded funds.

However, the bank remains somewhat cautious of crypto, at least publicly; back in July, HSBC-owned Hang Seng Bank, also in Hong Kong, said that while licensed crypto companies can open a bank account, they’ll only be able to get a “simple” one.

Edited by Nick Baker.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Ian Allison

Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.