- Fireblocks has been BNY Mellon and BNP Paribas’ preferred custody technology vendor.
- Regulatory ambiguity around cryptos has reduced major banks’ excitement for the sector.
Two sources acquainted with the situation have reportedly confirmed that HSBC, one of the world’s major banks, is collaborating with the crypto custody technology business Fireblocks.
Even before this agreement, Fireblocks had experience dealing with major institutions because of their expertise in crypto custody technologies like multi-party computation (MPC). Fireblocks has been BNY Mellon and BNP Paribas’ preferred custody technology vendor since early 2021.
Still Wary of Cryptocurrencies
Regulatory ambiguity around cryptocurrencies has reduced major banks’ excitement for cryptocurrency. This is due in large part to the legal battles being fought between crypto businesses and U.S. authorities. This murkiness is allegedly helping foreign financial firms gain ground on their American rivals.
Earlier in June it was reported that HSBC, which manages over $3 trillion in assets, started offering bitcoin and ether ETFs to consumers at its Hong Kong office.
The bank is still wary about cryptocurrencies, at least in public; in July, HSBC-owned Hang Seng Bank, also located in Hong Kong, declared that licensed crypto firms may create a bank account, but only a “simple” one.
On the other hand, Franklin Templeton, one of the largest investment organizations in the world, has submitted an application to the U.S. SEC for a spot Bitcoin exchange-traded fund. This novel financial vehicle, dubbed the “Franklin Bitcoin ETF,” has the potential to herald the next phase of institutional engagement in the crypto market.
Highlighted Crypto News Today:
Franklin Templeton Applies for a Spot Bitcoin ETF With the U.S. SEC
