HSBC will not be joining the growing list of major banks offering Bitcoin and crypto investment products to customers and clients.
The recent tumultuous price action for cryptocurrencies seems to be providing ample opportunity for popular anti-crypto bank HSBC to double down on its negative stance towards virtual currencies.
Speaking to Reuters on Monday, HSBC CEO Noel Quinn said that the bank was not interested in running a crypto trading desk or offering cryptocurrency-related investment packages to its clients.
Quinn identified volatility as a major reason for the bank’s decision despite the emerging trend of other major financial institutions announcing plans to open up crypto investment avenues for their clients.
Earlier in May, investment banking giant Wells Fargo announced plans to debut a cryptoprimacy.com/news/wells-fargo-investment-institute-to-onboard-crypto-clients-by-next-month” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/wells-fargo-investment-institute-to-onboard-crypto-clients-by-next-month/amp”>crypto investment product for major clients. Also, other major U.S. banks like Morgan Stanley and Goldman Sachs are in various stages of rolling out cryptoprimacy.com/news/goldman-sachs-readying-bitcoin-product-for-clients-btc-bounces-above-58k” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/goldman-sachs-readying-bitcoin-product-for-clients-btc-bounces-above-58k/amp”>institutional-grade Bitcoin funds for their customers.
Earlier in May, the New York Digital Investment Group partnered with fintech outfit Fidelity National Information Services to provide a framework for United States lenders to cryptoprimacy.com/news/us-banks-to-allow-bitcoin-trading-in-2021-says-nydig-execs” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/us-banks-to-allow-bitcoin-trading-in-2021-says-nydig-execs/amp”>offer crypto trading services to customers.
Detailing HSBC’s reticence on Bitcoin (cryptoprimacy.com/bitcoin-price-index” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/bitcoin-price-index”>BTC) and crypto in general, Quinn opined:
“I view Bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.”
The HSBC CEO also took a dig at stablecoins calling into question the reputation of the issuers as well as questioning the extent to which stablecoins in circulation are backed by structured reserves.
Quinn, however, voiced support for central bank digital currencies stating that CBDCs could simplify cross-border payments.
As previously reported by Cointelegraph, HSBC has a noted history of anti-crypto sentiments with the bank cryptoprimacy.com/news/hsbc-reportedly-blacklists-microstrategy-s-stock-for-investing-in-bitcoin” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/hsbc-reportedly-blacklists-microstrategy-s-stock-for-investing-in-bitcoin/amp”>blacklisting MicroStrategy stock on its online retail trading platform. At the time, HSBC revealed that the move was due to MicroStrategy’s massive Bitcoin investment drive.
Earlier in the year, the bank also reportedly blocked customers from repatriating profits from crypto exchange platforms to their HSBC accounts.