UBS Plots Gradual Entry Into Crypto Trading With Long-Term Tokenization Strategy

UBS plans a cautious crypto rollout tied to tokenization, prioritizing infrastructure and controlled client access.

Plans under review at UBS Group AG could soon give some private banking clients access to cryptocurrency trading. Instead of a fast rollout, the bank is linking the effort to its work on tokenized assets and supporting systems. Leadership points to internal systems and defined client use as the starting point, with broader expansion likely to unfold over several years.

UBS Confirms Early Steps Toward Crypto Investing for Select Clients

Swiss investment bank UBS Group AG confirmed during its Wednesday earnings call that crypto investing may soon be available to some private clients. The comments followed a report from early January that said the bank had begun selecting partners for a potential crypto trading service. Management framed the effort as exploratory and closely tied to broader digital asset plans.

Chief Executive Sergio Ermotti said the bank is building core systems to support both crypto access for individuals and tokenized deposit solutions for corporate clients. As such, UBS aims to follow proven models once regulatory and operational risks are clearer.

Ermotti further described the bank’s role as a “fast follower,” with rollout plans stretching three to five years.

Tokenization is central to UBS’s digital asset plans, with recent years spent testing blockchain systems for fund issuance, settlement, and cash-style products. One example is a tokenized money market fund on Ethereum that provides access to low-risk, short-term assets.

Recent financial results give UBS room to invest in long-term projects. Full-year net profit rose 53% to $7.8 billion, according to its FY25 report. On the other hand, quarterly profit for the period ending Dec. 31 increased 56% to $1.2 billion. Moreover, invested assets grew 15% year over year, lifting total assets above $7 trillion for the first time.

Controlled Crypto Access Gains Ground Among Major Global Banks

Initially, UBS was deeply concerned about cryptocurrencies generally. Senior UBS officials openly questioned BTC’s role as money or a store of value in 2017. As a result, the bank avoided direct crypto trading for years and kept digital efforts limited to internal blockchain systems.

In 2023, select wealthy clients in Hong Kong gained access to crypto futures-based exchange-traded funds. Those products provided price exposure without direct token ownership. 

Other firms across global banking are making similar moves, though most remain tightly controlled. Barclays recently acquired a stake in stablecoin settlement startup Ubyx and joined a 10-bank group studying a joint stablecoin.

At the same time, Morgan Stanley and Standard Chartered have outlined plans to expand crypto trading and prime brokerage services for institutional and high-net-worth clients.

In addition, the demand for regulated crypto exposure continues to grow. US-based spot bitcoin exchange-traded funds, led by BlackRock’s iShares Bitcoin Trust, have grown rapidly since gaining approval two years ago.

For UBS, crypto trading appears set to arrive slowly, backed by infrastructure rather than headlines. Executives have stressed that any crypto offering will rest on systems already used across wealth and corporate banking.

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