Blockchain Analytics company Elliptic has secured a strategic investment from HSBC, making it the only company in the sector supported by four globally systemically important banks (G-SIBS). HSBC joins JPMorgan Chase, Santander and Wells Fargo on Elliptics Investor List.
As part of the agreement, Richard May, Group Manager for Economic Crime at HSBC’s business and institutional bank arm, will take a seat on Elliptic’s board of directors.
Banking on Blockchain view
Elliptics technology is used by financial institutions, crypto exchanges and governments to monitor blockchain transactions for signs of economic crime. With HSBC’s investment, Elliptic says it will intensify to hire and expand its footprint in financial services.
“For over a decade, we have expected the company’s adoption of digital assets and have invested in robustness, scale and compliance functions required by global financial institutions,” said Elliptic CEO Simone Maini. “This is validation of our vision and the market’s growing needs.”
May said HSBC’s decision reflects the need for greater visibility in digital asset streams when the regulation is tightened.
“With the rapid development of digital assets and currencies, it has never been more important to mitigate financial crime risks,” he said. “Elliptic’s solution gives HSBC greater transparency, which helps to meet rising regulatory expectations and industrial standards.”
HSBC Deal a logical next step
Maini, who joined Elliptic more than a decade ago after a career in banking and financial crime compliance, described HSBC’s commitment as the natural next step in a long relationship.
“As is often the case with these kinds of conditions, it usually starts with some kind of commercial investigation,” she told Coindesk. “When you see a strategic imperative that adapts to high potential, it can lead back to the venture investment team inside the bank, and in the end this is where we landed.”
She said May’s appointment to the board will bring a new dimension: “We currently do not have a financial crime on our board, it is mostly investor background. Rich brings it 360-degree perspective from both bank and government, and I think it will have a massive influence.”
Growth areas: stableecoins, AI and coverage
Elliptic has run on a wave of demand from banks exploring stablecoins and tokenized assets. Earlier this year, it launched a tool called Due Diligence to help banks assess the drawing risks before holding StableCOin reserves.
Maini said the company is also pushing on with an “AI-driven roadmap”, including a compliance-focused copilot launched this year to shorten onboarding times for banks entering crypto. Another priority is to extend blockchain cover:
“We will not ever say no to a customer. If they want to screen transactions on a new network, we need to be ready.”
