HSBC Holdings plc (formerly known as The Hongkong and Shanghai Banking Corporation or HongkongBank) is a British universal bank and financial services group headquartered in London, England, with historical and business links to East Asia and a multinational footprint. In Hong Kong, HSBC is a top bank and known for its interference in the crypto & blockchain sector to provide enhanced customer experience.
On 8 Nov 2023, Bloomberg reported that HSBC Holdings Plc is going to enter into a partnership with Ripple-owned tech firm.
Ripple Labs, through its acquisition of the tech firm Metaco, will provide secured digital assets custody service and also will help HSBC’s existing digital asset solutions, like the HSBC Orion platform for asset issuance and the recently launched tokenized gold system.
In short, Ripple is going to play a vital role in the blockchain technology-powered financial services for HSBC.
Here HSBC is not the first mover in the crypto & blockchain sector, already many top players e.g. JPMorgan Chase & Co and Euroclear engaged directly & indirectly in this sector to bring enhancement to their digital financial services.
Ripple & blockchain banking solution
Ripple is a San Francisco headquartered fintech firm that provides payment services globally with the help of XRP Leger (XRPL) & XRP coin.
This firm also has been engaged with nearly 20 Central banks globally to provide blockchain tech infrastructure & tech solutions to develop Central Bank Digital Currency (CBDCs).
Recently Ripple became an official partner for the Central Bank of Georgia to develop the country’s digital currency.
Ripple Vs SEC
Ripple has been under huge legal hurdle in the US jurisdiction since Dec 2021. In Dec 2021, the US Securities and Exchange Commission (SEC) sued Ripple over the sale of $1.3 billion worth of unregistered XRP security.
In the last 3 months, court rulings confirmed that Ripple is standing in a better position and Ripple is going to win 90% of this case against the SEC’s charges.
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