Author: Jakub Dziadkowiec

Translation: Deep Tide TechFlow

Deep Tide Introduction: The world's largest wealth management institution, UBS, enabled Bitcoin and Ethereum trading for some private banking clients in January 2026. This event itself is not surprising, but it becomes more interesting in the context of Switzerland: currently, about 20 Swiss banks offer crypto services, covering more than 2.5 million accounts. ZKB's customer profile data breaks the stereotype that "crypto is a game for young people," while the financial reports of several banks show that the crypto business is becoming a substantial source of profit.

UBS Finally Joins the Game

In January 2026, UBS officially opened direct trading of Bitcoin and Ethereum to some private banking clients in Switzerland.

This institution, which manages over $47 trillion in assets, has been relatively conservative towards cryptocurrency in the past. Former Chairman Axel Weber publicly stated at the end of 2021, when Bitcoin reached an all-time high, "anonymous payments will not survive."

The driving force behind the shift comes from customer demand and competitive pressure. Morgan Stanley opened crypto fund investments to all wealth management clients at the end of 2025, no longer limiting it to high-risk customers with assets over $1.5 million. JPMorgan allows some clients to use BlackRock's Bitcoin spot ETF as collateral for loans. Even the last "anti-crypto fortress," Vanguard, surrendered in December 2025, allowing clients to trade crypto ETFs.

UBS is currently screening custodial and execution partners, initially focusing on a small range of private banking clients in Switzerland. It may later expand to the Asia-Pacific and U.S. markets.

Switzerland: The Leader in Global Bank Crypto Adoption

UBS's entry makes the crypto landscape of the Swiss banking industry more complete. Currently, about 20 banks in Switzerland offer crypto services, the highest number globally. In comparison, the U.S. has 15 and Germany has 12.

This number reflects a substantial user base. After Zürcher Kantonalbank (ZKB) and PostFinance launched crypto services in 2024, they collectively provided crypto trading access for more than 2.5 million Swiss accounts.

PostFinance, a systemically important state-owned bank in Switzerland, opened 36,000 crypto custody accounts in its first year, handling over 565,000 transactions. This figure has far surpassed the "pilot phase."

Crypto Buyer Profile: Not What You Think

Peter Hubli, head of digital assets at ZKB, admitted in an interview with The Big Whale that the bank initially expected crypto clients to lean towards younger demographics.

"This is probably the biggest surprise of this launch. Like many others, we thought we would attract a very young client base. But that is not the case at all."

The reality is that the average age of ZKB crypto buyers is between 30 and 50 years, primarily male, concentrated in private banking rather than retail banking.

A more crucial statistic: over 40% of crypto custody clients had no prior investment portfolios at ZKB. Their cash had been sitting idly in accounts. Crypto trading has activated a pool of "dormant funds" that would not have generated any asset management income otherwise.

The Crypto Business is Already Profitable

Financial data from several Swiss banks indicates that crypto is no longer in the "proof of concept" stage:

Maerki Baumann derives more than 20% of its bank profits from digital asset business. Swissquote earns about 10% of its total revenue from crypto. Arab Bank Switzerland's crypto assets account for only 5% of AUM but contribute 7% of net profit.

While the scale may be small, the profit contribution is disproportionately high. The unit economics of crypto services clearly outperform traditional banking business.

Switzerland is Not an Isolated Case but a Reflection of a Global Institutional Wave

The actions of Swiss banks align with global trends among institutional funds. EY-Parthenon and Coinbase conducted a survey in January 2026 of over 350 institutional investors covering asset management, family offices, and private banks. 73% plan to increase crypto allocations in 2026, and 84% are currently using or considering exploring stablecoins.

Custody security and regulatory clarity remain the top two concerns for institutional investors. Switzerland holds a first-mover advantage in these two dimensions: the Distributed Ledger Technology Act (DLT Act), passed in 2021, provides a legal framework, and bank-grade custodians like Taurus and Sygnum offer the necessary infrastructure. The process of crypto adoption in Swiss banks is essentially a localized example of the global institutional entry trend.

OECD Tax Framework + FINMA License Reform: Two Tests of Switzerland's Advantages

The OECD's Crypto Asset Reporting Framework (CARF) will take effect on January 1, 2027, ending the era of tax opacity for crypto assets. The public consultation for FINMA's licensing reform closed in February 2026 and will redefine custody and stablecoin rules, with some provisions aligning with the European MiCA framework.

Ilya Volkov, a board member of the Crypto Valley Association, warned that excessive "regulatory micromanagement" could erode Switzerland's long-standing pragmatic advantages.

Whether Switzerland can maintain its global leadership in 2027 depends on the final implementation of this regulatory reform.