UBS Group is ending years of skepticism about cryptocurrencies and preparing to allow some private banking clients to trade digital assets, according to Bloomberg, as competitive pressure increases from Wall Street rivals expanding into the sector.
The Swiss wealth manager is in talks with potential partners to create a crypto offering for select private banking clients in Switzerland, people familiar with the matter told Bloomberg. Bitcoin and Ethereum would be the first assets available for trading.
This move marks a notable shift for UBS, which has long maintained a conservative stance on virtual currencies. Former President Axel Weber, a former central banker, said in late 2021 that anonymous payments “will not survive,” even as bitcoin reached then-record prices.
Customer demand is pushing the bank toward digital assets despite its historical reluctance, a person told Bloomberg. Discussions about this initiative have been underway for several months, but no final decision has been made on how to proceed.
If implemented, the service could potentially be rolled out to Asia Pacific and US markets beyond the initial launch in Switzerland, according to the report. UBS declined to provide details but acknowledged its strategic focus on digital assets.
“We are actively monitoring developments and considering initiatives that reflect client needs, regulatory developments, market trends and rigorous risk controls,” a UBS spokesperson said.
This decision follows similar announcements from competitors. Morgan Stanley is working with cryptocurrency provider ZeroHash to offer bitcoin, ether and solana trading to E*Trade clients in the first half of this year. JPMorgan has been exploring institutional cryptocurrency trading options, Bloomberg reported in December.
Banks have historically focused their blockchain efforts on infrastructure projects such as tokenized funds rather than direct crypto trading, mainly due to the strict capital requirements of Basel III. The Basel Committee announced in November that it would accelerate the review of some crypto-related rules, potentially making it easier 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 trading of crypto-linked ETFs to high-net-worth clients in Hong Kong, a service it launched in November 2023 alongside rivals like HSBC. Direct trading of cryptocurrencies would represent a deeper commitment to the asset class.
The cryptocurrency trading business has generated substantial revenue for some companies. Robinhood Markets earned $626 million from cryptocurrency in 2024, outpacing its stock trading revenue by more than three times, according to Bloomberg data.
UBS Chairman Colm Kelleher said in early 2023 that the bank was seeking appropriate regulatory frameworks to address client interests in digital tokens, signaling that the institution was aware of the demand, although it maintained a cautious approach.
