UBS Group is reversing years of skepticism toward cryptocurrencies and preparing to let some private banking clients trade digital assets, according to Bloomberg, as competitive pressure mounts from Wall Street rivals expanding into the sector.
The Swiss wealth manager is in talks with potential partners to build a crypto offering for select private bank clients in Switzerland, people familiar with the matter told Bloomberg. Bitcoin and ether would be the initial assets available for trading.
The shift marks a notable change for UBS, which has long maintained a conservative position on virtual currencies. Former chairman Axel Weber, a onetime central banker, declared in late 2021 that anonymous payments "will not survive," even as bitcoin was hitting then-record prices.
Client demand is pushing the bank toward digital assets despite its historical reluctance, one person told Bloomberg. Discussions about the initiative have been underway for several months, though no final decision has been made on how to proceed.
If implemented, the service could eventually roll out to Asia-Pacific and U.S. markets beyond the initial Swiss launch, according to the report. UBS declined to provide specifics but acknowledged its strategic focus on digital assets.
"We actively monitor developments and explore initiatives that reflect client needs, regulatory developments, market trends and robust risk controls," a UBS spokesperson said.
The move follows similar announcements from competitors. Morgan Stanley is working with cryptocurrency provider ZeroHash to bring bitcoin, ether and solana trading to E*Trade customers in the first half of this year. JPMorgan has explored institutional crypto trading options, Bloomberg reported in December.
Banks have historically focused blockchain efforts on infrastructure projects like tokenized funds rather than direct crypto trading, primarily due to stringent capital requirements under Basel III. The Basel Committee announced in November it would fast-track a review of certain crypto-related rules, potentially easing the path for banks to enter the market.
Trump's return to the White House has accelerated institutional interest in digital assets, creating pressure on major wealth managers to offer crypto access. U.S. spot bitcoin ETFs have attracted nearly $140 billion in assets since their approval two years ago, led by BlackRock's iShares Bitcoin Trust.
UBS already offers crypto-linked ETF trading to wealthy Hong Kong clients, a service it launched in November 2023 alongside competitors like HSBC. Direct cryptocurrency trading would represent a deeper commitment to the asset class.
The crypto trading business has generated substantial revenue for some firms. Robinhood Markets earned $626 million from cryptocurrency in 2024, surpassing its equity trading income by more than threefold, Bloomberg data shows.
UBS Chairman Colm Kelleher said in early 2023 that the bank was looking for appropriate regulatory frameworks to serve client interest in digital tokens, signaling the institution's awareness of demand even as it maintained a careful approach.
