UBS explores crypto trading access for high-net-worth clients

UBS Group AG, a $6.9 trillion asset manager, plans to make crypto investing available for some private banking clients.

According to reports, the Swiss banking giant is in the process of selecting partners for a crypto offering. Discussions have been ongoing for several months; however, UBS hasn’t made a final decision on how to proceed.

High-net-worth individuals to access spot Bitcoin/Ethereum and derivatives                                             

The initiative would represent an expansion beyond UBS’s existing blockchain initiatives. In November 2024, the bank launched UBS Digital Cash, a private blockchain pilot for multi-currency cross-border payments.

On Tuesday, the UBS CEO said that the next phase of global banking is centered on Bitcoin and other digital assets at its core. Therefore, high-net-worth individuals could access spot Bitcoin and Ethereum, as well as derivatives, with potential rollout to Asia-Pacific and the US.

This report comes a day after  Sergio Ermotti, CEO of UBS, stated that blockchain’s convergence with traditional banking is inevitable. According to him, it is a great way for companies to become more efficient and reduce costs. However, UBS has previously described crypto as a limited segment of digital assets and refrained from direct offerings amid regulatory uncertainty.

As reported by Cryptopolitan, Ermotti stated that the financial industry will continue to face pressure on gross margins without blockchain technology. He urged financial institutions to remain relevant by maintaining strong capital, products, personnel quality, and client advice.

This move follows the UBS Tokenize pilot with Chainlink and Swift for tokenized funds and digital cash solutions. The blockchain data provider noted that the first use case involved a technical and operational pilot with UBS Tokenize, building on prior work with the Monetary Authority of Singapore.

Meanwhile, several major banks have already entered the space, including Standard Chartered, which offers spot Bitcoin and Ether trading to institutional clients, and JPMorgan and Morgan Stanley, which have enabled crypto trading or access for select client segments. Others, such as Bank of America, allow exposure through approved products, such as Bitcoin ETFs.

UBS chief executive Sergio Ermotti plans to step down

This move comes as UBS chief executive Sergio Ermotti plans to step down in April 2027. This fires a starting gun on the race for one of the biggest jobs in global banking. However, he stated that he hopes his successor will be a candidate from within the bank.

“As previously communicated, I will complete the integration of Credit Suisse and remain CEO until at least the end of 2026 or spring 2027,” Ermotti said. The integration means UBS will cut around 3,000 jobs in Switzerland, Ermotti added, reiterating a figure made public in 2023.

However, it is still a crucial time for UBS as it fights Swiss government plans to tighten its capital requirements. This dispute has fuelled speculation that Switzerland’s biggest lender could move its headquarters abroad.

UBS blamed regulatory uncertainty stemming from the government’s announcement in April 2024 of an update to its “too big to fail” banking regulatory regime, effective through the end of 2025, for its share-price underperformance relative to other European and US banks. 

UBS estimates its market valuation lagged peers by 27% over the period, costing its shareholders about 30 billion Swiss francs ($37.48 billion) on top of the around $14 billion in expenses from integrating Credit Suisse.

Meanwhile, Iqbal Khan, Bea Martin, Robert Karofsky, and Aleksandar Ivanovic have been named as the possible successors. However, their profiles are grounded in traditional banking, wealth management, and institutional finance, not crypto leadership.

Kelleher, who is overseeing the succession, is looking to follow the example of his former employer, Morgan Stanley, which had several internal candidates to choose from when longtime chief James Gorman stepped down in 2023. Kelleher previously described the Wall Street lender’s succession as a “bloodless coup”, which he hoped to emulate.

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