UBS Plans Bitcoin and Ether Trading for Private Clients as Institutional Demand Accelerates: Report

CN
3 hours ago

Traditional banks are increasingly reassessing their stance on digital assets as client demand evolves. UBS Group AG is exploring cryptocurrency investment options for select private banking clients, according to a report by Bloomberg on Jan. 23. The development reflects a cautious but notable shift within global wealth management.

The report details plans under which the Swiss-based lender would permit a limited group of private banking clients in Switzerland to trade bitcoin and ethereum through approved partners. People familiar with the matter described a structure centered on third-party selection, custody safeguards, and regulatory alignment, indicating that the initiative remains under review rather than formally launched.

The report indicated that the service may later extend to additional regions, including Asia-Pacific and the United States, subject to demand and supervisory approval. Increased interest from wealthy clients seeking exposure to digital assets was cited as a contributing factor behind the bank’s evaluation. The approach signals a preference for incremental deployment, allowing UBS to test infrastructure and compliance frameworks before expanding availability.

Read more: UBS Tokenize Pilot Trials Chainlink DTA With Swift Messaging

Executive commentary offers insight into how digital assets fit into UBS’s longer-term technology vision. UBS CEO Sergio Ermotti stated at the World Economic Forum in Davos:

“ Blockchain is the future for traditional banking.”

He added that “You will see a convergence” between distributed ledger technology and established financial systems. UBS manages more than $5 trillion in assets, positioning it as the world’s largest wealth manager and giving its technology stance significant influence across the financial sector. Ermotti’s remarks mark an evolution from his 2018 view that blockchain was becoming essential for competitiveness, when he also explained that the technology could materially reduce costs and improve efficiency across financial services over a five- to 10-year horizon.

At that time, UBS maintained a clear distinction between adopting blockchain infrastructure and supporting cryptocurrencies as investment products. The reported exploration of crypto trading for private banking clients suggests that this boundary may be narrowing as regulatory frameworks mature and client demand increases. Taken together, UBS’s operational reviews and leadership statements indicate a gradual alignment between its blockchain ambitions and potential digital asset offerings.

  • What cryptocurrencies is UBS considering for private banking clients?
    UBS is exploring allowing select clients to trade bitcoin and ethereum through approved partners.
  • Who would have access to UBS crypto trading services?
    The initial rollout would be limited to a small group of private banking clients in Switzerland.
  • Why is UBS moving toward digital asset offerings now?
    Rising demand from wealthy investors seeking diversification and clearer regulation is driving the shift.
  • Could UBS expand crypto services beyond Switzerland?
    The bank may later expand to Asia-Pacific and the United States, depending on demand and supervision.

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