Noel Quinn, CEO of the largest European bank HSBC, considers bitcoin and cryptocurrencies in general to be too risky an asset and does not intend to support them in the future. Also, HSBC does not plan to launch a cryptocurrency trading platform or offer digital coins as investments to clients, because they are too volatile and characterized by a lack of transparency.
“Given the volatility of cryptocurrencies, we do not treat Bitcoin as an asset class. If our clients want to invest in cryptocurrency, then of course they can, but we do not offer bitcoin as an asset class in our business, ”said Quinn.
The position of the largest bank in Europe regarding cryptocurrencies is associated with the recent correction of bitcoin, during which the value of the asset fell by almost 50%. Experts believe that the main reasons for the collapse are the introduction of a ban on the use of cryptoassets by China, as well as the changed position of Elon Musk in relation to bitcoin.
HSBC is no less wary of stablecoins, considering them not reliable enough to use.
“For the same reasons, we are in no rush with stablecoins,” he said, referring to digital currencies that seek to avoid the volatility associated with typical cryptocurrencies by pegging their value to assets such as the US dollar.
Goldman Sachs sees no problem with Bitcoin volatility
While the largest European bank is trying to distance itself from investments in cryptocurrencies, considering them unreliable, the investment bank Goldman Sachs, on the contrary, is expanding its presence in the cryptocurrency market.
In early May, Goldman Sachs launched trading in NDFs, a derivative pegged to the bitcoin price. There is no delivery of the underlying asset; instead, the holders receive settlements in cash. As such, the company shields itself from digital currency volatility by buying and selling bitcoin futures in block trades on CME Group Inc., using Cumberland DRW as its trading partner.
Goldman Sachs management supports the course towards digitalization of the economy, anticipating big changes in the cryptocurrency market.
“Our clients have a demand for participation in this area, and we will continue to look for opportunities to meet their needs,” said David Solomon, CEO of Goldman Sachs.
According to the head of Goldman, the cryptocurrency market will face major changes in the next couple of years.
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