UBS Weighs Crypto Investing for Wealth Clients Amid Regulatory Review

UBS Group AG is preparing a move that could bring crypto investing into its private banking business. Plans are taking shape to give selected high-net-worth clients access to digital assets, marking a shift in how the Swiss bank approaches the sector. The effort reflects growing client demand, ongoing regulatory review, and UBS’s wider push into blockchain-based finance.

Regulatory Scrutiny Slows UBS’s Push Toward Client Crypto Investing

According to reports, UBS—which oversees approximately $6.9 trillion in assets—plans to allow a limited group of wealthy clients to invest in crypto. Discussions have been underway for several months as the bank evaluates technology partners and market infrastructure. No final decision has been announced, underscoring a cautious approach shaped by regulatory requirements and risk management considerations.

If launched, the offering would likely center on spot Bitcoin and Ethereum, alongside related derivatives. While UBS already uses blockchain-based systems in certain operations, this move would represent a more direct entry into digital asset investing for clients.

The bank has taken incremental steps in this direction. In November 2024, UBS introduced UBS Digital Cash, a private blockchain pilot aimed at improving multi-currency, cross-border payments. That initiative focused on internal settlement efficiency rather than customer-facing crypto trading.

UBS Targets Simple Spot Crypto Trades Over Broad Token Exposure

Speaking on Tuesday, UBS Chief Executive Sergio Ermotti said the next phase of global banking will place Bitcoin and other digital assets closer to the industry’s core. Under the current plan, crypto access would begin with private banking clients and later expand to regions such as Asia-Pacific and the United States. Any rollout would depend on regulatory clarity and market readiness in each jurisdiction.

The proposed crypto offering would include several key features:

• Access limited to high-net-worth private banking clients.
• Trading focused on spot Bitcoin and Ethereum.
• Use of derivatives for hedging and advanced strategies.
• Gradual regional expansion, starting outside Europe.
• Reliance on external partnerships rather than in-house infrastructure.

Ermotti has previously argued that deeper links between blockchain technology and traditional banking are inevitable. He has described blockchain as a tool for improving efficiency and lowering costs across the financial system.

At the same time, UBS has long viewed crypto as a relatively small segment of the broader digital asset market and has avoided direct offerings due to regulatory uncertainty and compliance risks.

Margin pressure across the banking sector has added urgency to these discussions. Ermotti has warned that profitability will remain under strain unless banks adopt new technologies. To stay competitive, he said, institutions must maintain strong capital positions, high-quality products, skilled employees, and reliable client advice.

Tokenized Funds and Digital Cash Tested in New Blockchain Pilot

Recent blockchain trials further highlight UBS’s growing interest in tokenized finance. A pilot involving UBS Tokenize, Chainlink, and Swift tested tokenized fund settlements and digital cash solutions, building on earlier collaboration with the Monetary Authority of Singapore.

Several global peers have already moved more aggressively into crypto. Standard Chartered offers spot Bitcoin and Ether trading to institutional clients, while JPMorgan and Morgan Stanley provide crypto access to selected customers. Bank of America allows indirect exposure through approved products such as Bitcoin exchange-traded funds.

The initiative comes as Ermotti prepares to step down as CEO in April 2027, following the integration of Credit Suisse—a process that includes cutting around 3,000 jobs in Switzerland. UBS is also navigating tensions with Swiss regulators over proposed changes to capital requirements.

According to the bank, these pressures have weighed on its share price. UBS estimates its valuation has lagged peers by 27%, costing shareholders roughly 30 billion Swiss francs, in addition to about $14 billion linked to the Credit Suisse integration.