$5T UBS To Offer Bitcoin and Crypto Trading as More Banks Expand Into Crypto

UBS, which is the world’s largest wealth manager, reportedly plans to roll out crypto trading for some of its banking clients. This move comes as more Wall Street giants, including JPMorgan and Morgan Stanley, venture into crypto.

UBS Plans Bitcoin And Ethereum Trading For Some Wealth Clients

According to a Bloomberg report, the Swiss banking giant is in the process of selecting partners for its crypto offering, having been in discussions for several months. The bank plans to initially let some clients of its private bank in Switzerland buy and sell Bitcoin and Ethereum, the two largest cryptos by market cap.

Once that happens, UBS may roll out the crypto offering to markets such as Asia-Pacific and the U.S. Notably, this move comes as rival banks enter the crypto space. As CoinGape reported, Morgan Stanley plans to roll out Bitcoin, Ethereum, and Solana trading for its clients. Furthermore, the bank has also filed for spot Bitcoin, Ethereum, and Solana ETFs, with plans to launch a crypto wallet later this year.

Meanwhile, JPMorgan, the largest U.S. bank, is also deepening its ties to the crypto industry. The bank already accepts BTC and ETH ETFs as collateral, while it has tokenized the JPM coin on Base, with plans to expand to the Canton network. CoinGape also reported in December that JPMorgan is exploring crypto trading for institutional clients.

UBS’ move further highlights the growing demand for crypto among institutional investors. Bloomberg reported that the banking giant is making a deeper push into crypto, partly in response to growing demand from its wealthy clients.

CEO Praises Blockchain Technology As the Future

During a CNBC interview at the World Economic Forum in Davos, UBS CEO Sergio Ermotti said he believes blockchain is the future of the traditional banking business. He further remarked that there will be a convergence between traditional finance (TradFi) and decentralized finance (DeFi).

However, Ermotti believes that blockchain technology still has to prove itself over time, especially with the threat of quantum computing. It is worth noting that the banking giant has been leveraging blockchain technology for a while now.

In 2024, UBS Asset Management launched a money market fund built on the top layer-1 network, Ethereum. Meanwhile, last year, the bank announced that it had executed the first live tokenized fund transaction leveraging Chainlink’s Digital Transfer Agent technical standard.

Banks’ entry into crypto is expected to speed up once the U.S. passes the CLARITY Act, according to White House Crypto Czar David Sacks. The U.S. has also been calling for reform of the Basel III framework to enable banks to expand into areas like crypto trading. In response, the Basel Committee has said it will review its rules around banks’ crypto holdings, which could pave the way for these banks to explore more areas in crypto.