UBS Weighs Crypto Trading Access for Select Private Clients

Source: CryptoTale Original Title: UBS Weighs Crypto Trading Access for Select Private Clients Original Link: UBS Group AG plans to make cryptocurrency investing available to select private banking clients, signalling a notable shift for the world’s largest wealth manager by assets. The Swiss bank, which oversaw about $4.7 trillion in client assets as of Sept. 30, is selecting partners for a potential crypto offering, according to people familiar with the discussions.

Those talks have continued for several months, although UBS has not reached a final decision on structure or timing, the people said. According to reports, UBS would initially allow some private banking clients in Switzerland to buy and sell Bitcoin and Ether.

After that, the bank may extend the service to other regions, including Asia-Pacific markets and the United States, depending on regulatory and operational readiness.

Client Demand and Competitive Pressure Shape the Move

UBS has always maintained a careful approach toward cryptocurrencies while it dedicates its resources to developing blockchain systems instead of engaging in actual cryptocurrency trading. The increase in wealthy client demand has grown since 2023, leading the company to change its digital asset strategy.

A UBS spokesperson said the bank continues to monitor digital asset developments while exploring initiatives tied to client needs, market trends, and regulatory frameworks. The spokesperson added that UBS recognises the role of distributed ledger technology and its importance in supporting digital asset markets.

At the same time, competition from major Wall Street peers has intensified, which has influenced regulatory expectations. Rivals such as JPMorgan Chase and Morgan Stanley have expanded digital asset efforts, increasing pressure on UBS to respond.

Regulation and Institutional Activity Drive Broader Context

Like other global lenders, UBS has focused digital asset work on tokenized funds and blockchain-based payment systems rather than spot crypto trading. Strict capital requirements under the Basel III framework have slowed broader bank participation in crypto trading activities across major markets.

That stance may shift. The Basel Committee said in November that it plans to accelerate a review of rules governing banks’ crypto holdings. Regulatory changes could open the door for new initiatives among global lenders.

Meanwhile, institutional involvement in crypto markets continues to expand. U.S.-based spot crypto exchange-traded funds have grown rapidly since approval. Funds led by BlackRock Inc.'s iShares Bitcoin Trust now oversee nearly $140 billion in assets.

Morgan Stanley has also partnered with ecosystem providers to enable crypto trading for clients in early 2026. JPMorgan is exploring crypto trading services for institutional clients.

The business has proven lucrative. Robinhood Markets Inc. generated $626 million from crypto trading in 2024, more than three times its equity trading revenue. UBS has already taken smaller steps. In November 2023, it allowed wealthy clients in Hong Kong to trade crypto-linked exchange-traded funds.

Former UBS Chairman Axel Weber previously voiced skepticism about cryptocurrencies. Despite that history, UBS’s ongoing deliberations signal a potential shift in how major private banks approach direct access to digital assets.