Crypto exchange Bitfinex finds partner in HSBC to carry out its banking services
The cryptocurrency industry is still in its nascent stage and it needs to clock more miles before it gains wider acceptance. But things are changing and traditional financial institutions are also testing the waters in an attempt to gauge the possibilities offered by this ever-evolving space. Traditional financial institutions and banks have now started partnering with players in the crypto space. Highlighting one such move, Larry Cermark, the head analyst at The Block tweeted on Saturday that the Hong Kong-based exchange Bitfinex is now banking with HSBC through a private account of Global Trading Solutions.
He also posted that all EUR, JPY, and GBP deposits are currently paused but Bitfinex “expects the situation to normalize within a week”.
Bitfinex is now banking with HSBC through a private account of Global Trading Solutions. Very good fit if you ask me. It's also worth mentioning that all EUR, JPY and GBP deposits are paused but Bitfinex "expects the situation to normalize within a week". Banking issues? pic.twitter.com/1pxQ13NO0m
— Larry Cermak (@lawmaster) October 6, 2018
Well, this latest tweet acquires all the more significance in light of the fact Bitfinex and Tether were customers of Noble Bank which is on the verge of collapse and this led to the two crypto firms to severe their relationship with the Puerto Rican firm.
Extrapolating from this fact we can safely suggest that the crypto exchange was looking for another banking institution to partner with and hence HSBC, the seventh largest bank in the world comes into the picture.
Providing further details about this latest development, The Block later released a full report.
The report goes on to add:
“Due to the nature of the private account, it is not clear whether HSBC is aware that Bitfinex is banking with the firm. Bitfinex, which is headquartered in Hong Kong and registered in the British Virgin Islands, has had a long and winding banking history. In April 2017, a banking relationship between Wells Fargo and Bitfinex ended. Bitfinex and Tether then moved their banking business to Noble International later in the year before beginning to move their balances late this past summer.”
Well, it remains still in the realms of speculation whether HSBC is aware of any such transaction taking place. And it the bank is supportive of any such private account, then it would go a long way in soothing the nerves of the crypto community.
Image via Shutterstock
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