• HSBC acquired the UK arm of collapsed Silicon Valley Bank (SVB) for £1.
• The acquisition will allow businesses and customers to access withdrawals as normal.
• The Bank of England and HM Treasury worked with HSBC to come to an agreement without using any taxpayer money.
HSBC Acquires UK Arm of Silicon Valley Bank
HSBC, the British multinational bank and financial services giant, has acquired the UK arm of the collapsed Silicon Valley Bank (SVB) for £1.
Shock Waves Across Banking and Finance Industry
The collapse of SVB last week sent shock waves across not only the banking and finance industry but also crypto. Businesses and customers can now continue to access withdrawals as normal.
Bank of England & HM Treasury Assistance
As US authorities worked to avert a calamity for SVB depositors, including shutting down Signature Bank, authorities in the UK also took steps to help UK-based customers. The Bank of England and the UK government reportedly worked overnight Sunday to strike a deal between SVB (UK) and HSBC.
3,000 Businesses Accessing Money through Acquisition
With the acquisition now in place, around 3,000 businesses are set to access their money. According to a news update from the HM Treasury, the HSBC-SVB deal did not involve any taxpayer money.
Conclusion
The acquisition by HSBC provides businesses and customers with assurance that they will be able to access their funds normally amidst a tumultuous time for both banking institutions and cryptocurrency markets.