The world’s largest private bank is reportedly tiptoeing into crypto for wealthy clients. UBS is the latest traditional bank to be backed into the nascent asset class.
Zurich-based UBS is exploring several alternatives for offering digital currency investments to the wealthy private clients of its $4.31 trillion private banking arm, citing sources familiar with the Swiss bank’s plans. In doing so, UBS is acquiescing to demand from its clients, the agency reported.
Other banks have moved more quickly into space than UBS has. In February, BNY Mellon flagged a digital custody unit for cryptocurrencies planned for later this year and then in March bought a crypto-security start-up. Morgan Stanley began offering its wealthy clients exposure to crypto via funds, and Goldman Sachs recently opened a crypto trading desk.
The move is hugely symbolic given UBS’ stature in wealth management, as traditional banks have been reticent to outright hostile to the crypto industry. «We are monitoring the developments in the field of digital assets closely,» the bank said. It emphasized its long-held stance that it is mainly interested in the technology which underpins cryptocurrencies.
A crop of crypto players including banks like Seba and Sygnum have popped up in Switzerland alongside traditional wealth managers. Bitcoin Suisse, an eight-year-old crypto trading start-up, withdrew its application for a banking license after Swiss regulator Finma signaled it would be denied, amid concerns it isn’t well enough equipped to combat money laundering.