Major UK hedge fund Brevan Howard launches crypto division

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Brevan Howard also hired former CMT Digital CEO Colleen Sullivan to lead private and venture investments in crypto.

Brevan Howard, a United Kingdom-based hedge fund, plans to "significantly expand" its cryptocurrency and digital assets, according to a new report from Reuters.

Chief Executive Aron Landy, who has been at Brevan's helm since its co-founder and long-time crypto backer Alan Howard stepped down in 2019, has stated that the firm has a "commitment to rapidly expanding its platform and offerings in cryptocurrencies and digital assets."

Brevan's strategy going forward with crypto is two-pronged. The firm is launching a new business division, "BH Digital," to manage its crypto and digital assets and has also hired CMT Digital Chief Executive Colleen Sullivan to lead private and venture investments in crypto.

Sullivan has led CMT Digital – a CMT Group division focused on crypto trading, blockchain investments, and legal/policy engagement in the industry – since late 2013. At Brevan, she would chair an investment committee dedicated to forging a new strategy focused on crypto technology. Landy has endorsed Sullivan's "exceptional track record in making highly successful crypto venture investments," adding that her appointment "will be of tremendous benefit to Brevan Howard clients."

Brevan's crypto strategy under Landy suggests that Howard's departure has done little to dampen the firm's appetite for investing in the space. Under his leadership, the Brevan Howard Master Fund had announced it would allocate 1.5% to crypto this April, roughly $84 million.

Howard himself has numerous crypto investments under his belt, including in EOS developer Block.one and the ICE-owned digital assets platform Bakkt. This summer he led a $25 million extension raise for London-based crypto services firm Copper.co and also invested in Asian crypto investment platform Kikitrade. He also has a 25% stake with One River Digital Asset Management, a United States-based hedge fund that purchased $600 million worth of Bitcoin (BTC) and Ether (ETH) in 2020.

HSBC UK reportedly cuts credit card payments to Binance

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“We take our duty as a responsible lender seriously and want to do everything we can to protect you,” HSBC UK reportedly wrote.

Banks in the United Kingdom continue to crack down on Binance cryptocurrency exchange, with banking giant HSBC reportedly becoming the latest bank to cut payment channels to the platform.

A series of alleged HSBC clients reported on Twitter this Monday that HSBC UK had suspended credit card payments to Binance.

According to an alleged announcement on the service suspension, HSBC UK made the decision “due to concerns about possible risks” to its customers. “We take our duty as a responsible lender seriously and want to do everything we can to protect you. We’ll continue to monitor the situation and let you know if anything changes,” the bank reportedly wrote.

BREAKING: HSBC, the 6th largest bank in the world, has now BANNED all payments towards Binance Exchange. pic.twitter.com/GGHLv0Czcd
— Mr. Whale (@CryptoWhale) August 2, 2021

HSBC UK cited a recent warning on Binance issued in late June by the U.K. Financial Conduct Authority (FCA), raising concerns on the regulatory status of Binance in the country. “This also explains some of the risks of investing in crypto assets should this go wrong,” the bank noted. Binance representatives previously told Cointelegraph that the FCA’s warning only applied to Binance Markets Limited, a separate legal entity from the main global exchange that operates through Binance.com.

HSBC and Binance did not immediately respond to Cointelegraph’s request for comment.

The latest report comes shortly after another U.K. bank, NatWest, confirmed in mid-July that the institution has blocked all credit and debit card payments to Binance until further notice. Previously, British multinational universal bank Barclays made a similar announcement in late June, citing the FCA’s warning.

HSBC has now apparently emerged as a major anti-crypto bank, withholding its customers from investing both in crypto and virtual asset-related products. Earlier this year, HSBC reportedly blacklisted the stock of business intelligence firm MicroStrategy on its online trading platform as part of its amended user policy prohibiting customers from interacting with cryptocurrencies.

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