Blockchain analytics firm Elliptic has secured a strategic investment from HSBC, making it the only company in the sector to be backed by four globally systemically important banks (G-SIBs). HSBC joins JPMorgan Chase, Santander and Wells Fargo on Elliptic’s investor roster.
As part of the deal, Richard May, Group Head of Financial Crime at HSBC’s corporate and institutional banking arm, will take a seat on Elliptic’s board.
Banking on blockchain oversight
Elliptic’s technology is used by financial institutions, crypto exchanges and governments to monitor blockchain transactions for signs of financial crime. With HSBC’s investment, Elliptic says it will step up hiring and expand its footprint in financial services.
“For over a decade, we’ve anticipated the enterprise adoption of digital assets and have invested in the robustness, scale and compliance capabilities 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 into digital asset flows as regulation tightens.
“With the rapid evolution of digital assets and currencies, mitigating financial crime risks has never been more important,” he said. “Elliptic’s solution provides HSBC with greater transparency, helping to meet rising regulatory expectations and industry 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 involvement as the natural next step in a long relationship.
“As is often the case with these sorts of relationships, it usually starts with some kind of commercial exploration,” she told CoinDesk. “When you see a strategic imperative aligning with a high-potential company, it can lead back to the venture investing team inside the bank, and ultimately that’s where we landed.”
She said May’s appointment to the board will bring a new dimension: “We don’t currently have a financial crime practitioner on our board, it’s mostly investor backgrounds. Rich brings that 360-degree perspective from both banking and government, and I think it’s going to have a massive influence.”
Growth Areas: Stablecoins, AI and Coverage
Elliptic has been riding a wave of demand from banks exploring stablecoins and tokenized assets. Earlier this year it launched a tool called Issuer Due Diligence to help banks assess wallet risks before holding stablecoin reserves.
Maini said the firm is also pushing ahead with an “AI-driven roadmap,” including a compliance-focused copilot launched this year to shorten onboarding times for banks entering crypto. Another priority is expanding blockchain coverage:
“We don’t ever want to say no to a customer. If they want to screen transactions on a new network, we need to be ready.”