Bitfinex seems to have entered into an official partnership with London-based banking heavyweight, HSBC, after a well-publicized fracas of changing banks over the years.
Former editor at Diar and head analyst at The Block, Larry Cermak reported the new development on Saturday, revealing that Bitfinex would be partnering with known British banking giant, HSBC, which is currently worth more than $133 billion at the moment. The parent company, Hong kong and Shanghai Banking Corporation, which has established firms across the Americas, Asia-pacific region, Europe, the Middle East, and Africa, is one of the largest banking conglomerates across the world.
In what might prove to be Bitfinex’s biggest catch yet, Cermak said:
“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’”
Bitfinex difficulty in securing a stable banking partner has not been a secret, at least not for the past three years now. Being one of the oldest cryptocurrency exchanges, Bitfinex describes itself as the leading cryptocurrency exchange in the world. However, they have not been short of challenges. Before major cryptocurrency markets like South Korea, Japan, and the United States waded in and defined regulations pertaining to cryptocurrency, the exchange was part of an early scab that fought the majority of the brunt leveled against the crypto space.
The exchange which initially started in Taiwan moved its operations from the southeastern Asian country to the Carribean, after a long-dragging and well-documented disagreement with Taiwanese banks. Bitfinex, now headquartered in Hong Kong, also filed a lawsuit against Wells Fargo–a huge banking corporation in the United States–over issues of blocked deposits.
Bitfinex’s partnership with Puerto Rico-based Noble Bank afterward did not last long too. Noble bank which reportedly helped the exchange process clients’ transactions, only recently filed for bankruptcy, as Bitfinex lost its only banking partner.
HSBC remains the first notable banking partner that Bitfinex has been able to secure since 2017 when it had Wells Fargo. The new partnership is set to provide Bitfinex with reasonable benefits, including the level of stability they have so craved over the past four years.
The only question that remains is how long Bitfinex’s new partnership would last?