By
Chimamanda U. Martha
April 3rd, 2024
Now, one of the biggest crypto exchanges, Bitfinex. will receive banking services from HBSC, the 7th largest bank in the world.
Having experienced an enormous hype in the end of 2017, cryptocurrencies have become a real phenomenon in today’s world. Now they can boast attention not only from the side of crypto enthusiasts and tech startups but also from the side of traditional financial institutions and banks that are becoming more and more interested in establishing partnerships with crypto businesses and exchanges.
The latest news on this issue was received from the Hong Kong-based Bitfinex, one of the leading crypto exchanges in the world. According to the announcement, it obtained a new banking partner. It is HSBC, a $133 billion banking giant based in London.
“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”, reported Larry Cermak, former editor at Diar and head analyst at The Block.
Earlier, Bitfinex was a customer of Noble Bank, based in Puerto Rico. But when the banking institution has found itself practically on the brink of bankruptcy, the crypto exchange took a decision to quit these business relations. Namely this situation has made Bitfinex temporally halt its Euro, Japanese Euro, and Great British Pound deposit services.
Nevertheless, the exchange’s partnership with Noble Bank wasn’t a long-lasting one. The information about Bitfinex’s cooperation with this bank to process transactions sent by its clients was revealed only in May 2018.
Being one of the oldest cryptocurrency exchanges, Bitfinex has experienced a number of difficulties with authorities and banking institutions on different markets. Bitfinex had some conflicts with Taiwanese banks and even had a legal battle with the US-based Wells Fargo due to the fact that the banking giant had blocked deposits to the exchange’s banking account which had disrupted its operations.
After some unsuccessful attempts, now Bitfinex has chosen its new banking partner that is believed to be a really appropriate one. This partnership (if it takes place throughout a long time period) is able to enhance a level of stability of the exchange’s operations and bring more confidence to its clients.
Though it may really be a big deal, speaking to the media Kasper Rasmussen, director of communications at Bitfinex, didn’t give any comments on the details of this partnership with HSBC:
“Bitfinex does not, and has never, commented on actual or potential business relationships.”
Nevertheless, it’s worth mentioning that a great number of crypto exchanges providing their services on such markets as Japan and South Korea have already established cooperation with major financial institutions and leading banks to receive high quality banking services which could ensure their seamless functioning. So, in general this partnership between Bitfinex and HSBC can potentially bring a significant positive impact on the crypto market and its stability.