"HSBC is getting faster, when are the other banks?"
Today we were surprised by the news about one of the largest banks in the world, London-based HSBC reportedly signing an agreement with cryptocurrency custody technology firm Fireblocks.
In context, Fireblocks is one of the firms that specializes in digital asset custody technology such as multi-party computation (MPC)* following their previous experience working with large banks.
*Technology that enables secure data processing and sharing between a number of parties without a single party having access to the complete set of data
Earlier in early 2021, Fireblocks not only became a custody technology provider to BNY Mellon but also played an important role for BNP Paribas.
It is common knowledge that HSBC did not respond to many requests for comment by the time of publication while Fireblocks declined to comment further.
But it should be known that the confidence of big banks is starting to back off when the rules regarding digital assets are becoming more uncertain, especially the situation in the United States (US) where regulators are eager to fight crypto companies in court.
That lack of clarity has allowed financial institutions in Europe and Asia to gain multiple advantages over the US.
Please be informed that HSBC which holds approximately $3 trillion in digital assets has allowed its customers in its Hong Kong branch to trade in BTC or Ethereum (ETH) ETFs.
