UBS Group AG will soon offer Bitcoin trading in Switzerland to select private banking customers.
Bloomberg report Citing people with knowledge of the situation, it is believed that the Swiss bank giant has been discussing the launch of a cryptocurrency exchange for many months and currently selecting partners.
The initial service will be restricted to only a subset Swiss The initial roll-out will be for private banking clients. A wider distribution is then possible.
UBS still hasn’t made a final implementation decision, according to the sources, adding that the plans will be subjected regulated, risk and operational factors.
Instead of building an entire digital asset stack on-site, the banks According to reports, the company is looking at partnerships with third party providers who could take care of trading execution, custody and compliance.
Partner-led models would enable the bank to provide crypto exposure, while also reducing balance sheet risks and operational complexity.
The approach adopted here is similar to the strategies of major financial institutions that are entering into the digital asset market, particularly for those who wish to adhere with the Basel III framework’s strict capital requirements.
According to the structure proposed, eligible clients would be able to initially buy and sell BTC (Bitcoin) and Ethereum (ETH), which are the two biggest digital assets in market capitalization.
The topic of additional assets has not been raised.
Possible UBS expansion beyond Switzerland
Bloomberg reports that UBS may expand the service beyond Switzerland to include Asia-Pacific, the United States and other regions depending on the regulatory environment and customer demand.
Bloomberg estimates that UBS managed approximately $4.7 trillion of assets at the end of September, which makes it the biggest wealth manager in global. A limited crypto offering would be a significant step towards institutionalizing bitcoin in traditional private banking.
In the past, it has maintained a cautious attitude towards cryptocurrency.
UBS to launch November 2023 allowed wealthy clients in Hong Kong to trade cryptocurrency-linked exchange-traded funds, joining competitors such as HSBC, but stopped short of offering direct spot crypto trading.
UBS declined to comment specifically on the Bloomberg report, but did confirm that it continues to investigate digital assets initiatives.
“As part of UBS’s digital asset strategy, we actively monitor developments and explore initiatives that reflect client needs, regulatory developments, market trends and robust risk controls,” The spokesperson stated. “We recognize the importance of distributed ledger technology like blockchain, which underpins digital assets.”
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Source: bitcoinmagazine.com
