UBS to offer crypto to some private banking clients – report

Bloomberg has reported that UBS plans to offer direct investments in Bitcoin and Ether to some of its private banking clients, citing sources. The bank is currently talking to potential partners. The cryptocurrency offering will start in Switzerland and then expand to the United States and Asia. In 2021, Bloomberg reported that the bank was considering offering a similar service, but that was before the collapse of FTX.

The move would be significant given UBS is one of the world’s largest wealth managers, with $4.7 trillion in assets under management in that division, alongside another $2 trillion in its asset management division. The bank started offering crypto ETFs for clients in Hong Kong in late 2023. When the first spot Bitcoin ETFs were launched in the US in early 2024, it enabled access to clients, but somewhat cautiously in that it didn’t actively promote them. Regarding direct crypto offerings, Swiss private bank Julius Baer started providing access to crypto products in 2020, through a collaboration with digital asset bank Amina (formerly SEBA).

UBS is now signaling a more proactive approach to digital assets. In the Bloomberg announcement, the UBS spokesperson said, “As part of UBS’s digital asset strategy, we actively monitor developments and explore initiatives that reflect client needs, regulatory developments, market trends and robust risk controls.” They continued, “We recognize the importance of distributed ledger technology like blockchain, which underpins digital assets.” This echoes the sentiment of UBS CEO Sergio Ermotti at the World Economic Forum this week. He told CNBC, “I do believe that blockchain and that kind of technology is the future for the traditional banking business.” The bank has been leaning into blockchain for years.

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