UBS, a Swiss bank, is taking a careful approach to offering direct access to cryptocurrencies to its private banking clients.
The bank confirmed its plan during its earnings call on Wednesday. The bank’s executives said that the move is part of a wider, multi-year approach that focuses on tokenized assets and digital infrastructure.
The confirmation of the bank’s plan came after a report from Bloomberg, released at the beginning of January. This confirmation report from Bloomberg, released at the beginning of January, stated that the bank had begun to select partners for a potential crypto trading platform. The invested assets exceeded the $7 trillion milestone for the first time in the bank’s history.
The bank’s CEO, Sergio Ermotti, said that the bank is focusing on developing its infrastructure at the moment. He said that the bank is also looking at specific use cases, such as individual clients’ access to cryptocurrencies and tokenized deposit solutions for corporate clients.
Multi-Year Plan for Tokenized Asset Integration
The CEO stated that the bank does not have a goal of becoming a leader in blockchain technology adoption. The bank will instead become a “fast follower” in tokenized assets. He added that the bank will take between three and five years to develop its digital assets.
The digital assets will be part of the bank’s existing businesses. The bank added that it will integrate its tokenized assets into its existing wealth management and corporate client solutions.
The bank’s full-year net profit increased by 53% to $7.8 billion in its FY25 financial report. The bank said that its net profit for the quarter ending December 31 increased by 56% to $1.2 billion.
Asset growth also saw an increase of 15% in invested assets over the prior year, marking a milestone. The invested assets exceeded the $7 trillion milestone for the first time in the bank’s history.
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However, UBS’ current position on cryptocurrencies is different from its past position. In 2017, the bank’s officials, including the global chief economist Paul Donovan, expressed their skepticism about cryptocurrencies.
They spoke about the capabilities of cryptocurrencies, particularly bitcoin, to act as a medium of exchange or store of value.
UBS Transition From Skepticism to Tokenized Markets
However, UBS’ current position on cryptocurrencies is different from its past position. In 2017, the bank’s officials, including the global chief economist Paul Donovan, voiced their skepticism towards cryptocurrencies, specifically regarding their potential as a medium of exchange or a value store.
The bank’s early foray was the introduction of a tokenized money market fund on the Ethereum platform. According to UBS, the fund provides investors with an opportunity to gain exposure to high-quality money markets.
UBS also introduced a limited form of crypto investment for clients in certain markets. In 2023, the bank introduced the facility for its high-net-worth clients in Hong Kong to invest in crypto futures-based ETFs. This facility did not involve the ownership of cryptocurrencies.
Morgan Stanley and Standard Chartered have announced intentions to expand crypto trading and prime brokerage services. These offerings target institutional and high-net-worth clients rather than retail investors.
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