HSBC has barred customers of its online share-trading platform from buying or moving into their accounts MicroStrategy Inc. stock, according to Reuters. The bank referred to MicroStrategy stock as a “virtual currency product.”
MicroStrategy is led by bitcoin proponent Michael Saylor and owns billions of dollars of the cryptocurrency.
Last week, MicroStrategy said it owns around 91,579 bitcoins, worth around $5.5 billion, equal to about 80% of the $6.8 billion capitalization.
HSBC will only allow the holding, sale, and outgoing transfer of MicroStrategy shares.
HSBC said it has no appetite for direct exposure to virtual currencies and wants to facilitate products or securities that derive their value from virtual currencies.
The bank said its policy towards cryptocurrencies had been in place since 2018 and is kept under review.
The move by HSBC comes amid the growing embrace of cryptocurrencies by large financial firms and investors seeking yields in a world of ultra-low interest rates.
HSBC stock is currently declining as MicroStrategy gains. HSBC: NYSE is down 0.65%, MSTR: NASDAQ is up 0.125%
