Mar 13, 2023
HSBC Rescues Collapsed SVB UK with Acquisition
HSBC Holdings, one of the world’s largest banking groups, has come to the rescue of the United Kingdom-based branch of the failed Silicon Valley Bank, with a new acquisition.
On March 13, HSBC UK Bank announced that it had acquired Silicon Valley Bank UK Limited for one British pound sterling (GBP), or $1.21.
As of March 10, 2023, SVB UK had loans totaling 5.5 billion GBP ($6.7 billion) and deposits of 6.7 billion GBP ($8.1 billion). The company reported a profit before tax of 88 million GBP ($107 million) for the financial year ending Dec. 31, 2022. Its tangible equity was estimated at 1.4 billion GBP ($1.7 billion).
HSBC Group CEO Noel Quinn commented that the acquisition was an “excellent strategic move” for the company’s business in the United Kingdom, and that it would “strengthen its commercial banking franchise and enhance our ability to serve innovative and fast-growing firms.”
The news of the acquisition comes shortly after U.S. authorities ordered SVB to shut down operations on March 10, resulting in a wave of panic on crypto markets. Major crypto companies like Circle and Coinbase had significant exposure to the bank, and were unable to withdraw their funds.
Circle, the issuer of USD Coin (USDC) — the second largest stablecoin by market value — was unable to withdraw $3.3 billion of its $40 billion reserves due to SVB’s collapse. Coinbase had around $240 million in corporate funds at Signature, expecting to fully recover the amount. Paxos, the issuer of stablecoins like Pax Dollar (USDP) and the troubled Binance USD (BUSD) stablecoin, also had $250 stuck at Signature, but said that its private insurance would cover the amount.
The acquisition of SVB UK by HSBC UK Bank is a major step forward for the web3 space and the promotion of NFTs. It is a sign that major financial institutions are beginning to recognize the potential of the web3 space and are taking steps to invest in it.
The acquisition also opens up new opportunities for NFT marketing, as HSBC UK Bank will be able to provide services to companies looking to promote their NFTs on platforms such as Twitter. It also provides an opportunity for a web3 agency to be established to help companies create and market their NFTs.
HSBC UK Bank’s acquisition of SVB UK is a game-changer for the web3 space, and it is likely to have a major impact on the way NFTs are marketed and sold. It is a sign that the web3 space is becoming increasingly attractive to major financial institutions, and that the future of the space is looking very bright.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.