HSBC acquires Silicon Valley Bank’s UK arm in £1 rescue deal

HSBC

Global banking firm HSBC is acquiring the UK branch of the recently collapsed Silicon Valley Bank, SVB UK.

The company announced on 13 March that its subsidiary, HSBC UK Bank, would be acquiring SVB UK for £1.

HSBC said in its announcement that SVB UK had outstanding loans of approximately £5.5 billion and held deposits of £6.7 billion as recently as 10 March.

In the financial year ending 31 December 2022, SVB UK recorded profits of £88 million before tax,...

13 March 2023 | Banking

HSBC and Wells Fargo using blockchain to settle forex trades

HSBC HQ

HSBC and Wells Fargo, two of the world’s largest financial institutions, have started using blockchain technology to settle foreign currency trades.

The distributed ledger technology is being provided by Baton Systems with the aim of increasing settlement speed and efficiency.

Through Baton’s platform, the two banks are settling FX trades with real currencies and real accounts in less than three minutes.

It avoids passing the trades through CLS, a...

14 December 2021 | Banking

ConsenSys raises $200m from HSBC and Third Point to fund Web3 vision

Fox - MetaMask / ConsenSys

ConsenSys, a leading Ethereum software company, has raised $200 million (£149m) from investors including HSBC and US hedge fund Third Point, bringing its valuation to $3.2 billion (£2.38bn).

The New York-based start-up provides a whole host of products and services for the decentralised Web3 ecosystem, most notably the app and web browser extension MetaMask.

MetaMask allows users to hold, send, and manage digital assets in a flexible wallet that can connect with other...

23 November 2021 | Blockchain Applications

HSBC steers clear of Bitcoin due to “volatility”

An HSBC sign.

HSBC has confirmed it has no interest in getting involved with Bitcoin.

The bank has no plans to offer the cryptocurrency to clients due to its volatility and lack of transparency, according to HSBC chief executive Noel Quinn.

He said: “Given the volatility we are not into bitcoin as an asset class. If our clients want to be there then of course they are, but we are not promoting it as an asset class within our wealth management business.

“I view bitcoin as...

26 May 2021 | Banking