UBS Group AG (UBS.US) is planning to open cryptocurrency investments to some of its private banking clients. For the world's largest wealth manager, this move could represent a significant step into the digital asset space. According to people familiar with the matter, the Swiss banking giant, which manages approximately $4.7 trillion in assets, is currently vetting partners for its cryptocurrency operations. The discussions have been ongoing for several months, and as the deliberations are private, UBS has not yet made a final decision on how to proceed with the business. One of the sources indicated that UBS will initially allow specific clients of its Swiss private bank to buy and sell Bitcoin and Ethereum. The service may subsequently be expanded to markets such as the Asia-Pacific region and the United States.
Offering access to cryptocurrencies marks a significant shift in UBS's position, as the bank has long maintained a cautious stance toward virtual tokens. Concurrently, as Trump returns to the White House, Wall Street competitors like JPMorgan Chase and Morgan Stanley are expanding their digital asset footprints, putting pressure on UBS to follow suit. One source mentioned that UBS's increased investment in cryptocurrencies is partly a response to the growing demand for digital assets from its wealthy clientele. A UBS spokesperson stated, "As part of UBS's digital asset strategy, we actively monitor industry developments and explore initiatives that reflect client needs, regulatory dynamics, market trends, and possess robust risk controls. We recognize the importance of distributed ledger technology, such as blockchain, as the foundation for digital assets."
Similar to many other global banks, UBS's previous efforts in the digital asset space have primarily focused on building blockchain-based infrastructure for businesses like tokenized funds and payments. Large lenders have been slow to enter areas like cryptocurrency trading, largely due to the onerous capital rules under the Basel III framework. The United States has been leading calls to revise these standards. In November, the Basel Committee stated it would accelerate the review of certain elements of the rules governing banks' holdings of crypto assets—a move that could pave the way for lenders to take new initiatives.
UBS's deliberations also highlight the deepening institutional involvement in cryptocurrencies, which is reshaping the industry. Since their initial approval two years ago, US cryptocurrency ETFs, led by BlackRock's iShares Bitcoin Trust, have seen their assets under management swell to nearly $140 billion. Morgan Stanley is collaborating with crypto provider ZeroHash and plans to allow E*Trade clients to trade popular tokens like Bitcoin, Ethereum, and Solana starting in the first half of this year. A December report indicated that JPMorgan Chase is also exploring cryptocurrency trading services for institutional clients.
The cryptocurrency trading business has proven highly profitable for some companies that have already entered the space. Data shows that Robinhood Markets Inc. generated $626 million in crypto trading revenue in 2024, more than triple its stock trading revenue. In November 2024, UBS began offering cryptocurrency-linked ETF trading services to wealthy clients in Hong Kong, joining competitors like HSBC Holdings. Former UBS Group Chairman Axel Weber, an ex-central banker, has long held a bearish view on Bitcoin. In late 2021—shortly after Bitcoin surged to a new record—he stated that the concept of anonymous payments "will not survive."
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