Financial Giant UBS Exploring Crypto Services for Wealthy Clients

2 years ago 124

Swiss banking giant UBS Group AG is exploring ways to offer wealthy clients the ability to invest in crypto assets.

According to a Bloomberg report, UBS is in the early stages of allocating a small percentage of wealthy clients’ portfolios to crypto, joining a growing list of traditional banking institutions warming up to the space.

Details of UBS’ investment strategy haven’t come to light yet, but one option is reportedly investing through third-party vehicles.

In a statement, UBS says,

“We are monitoring the developments in the field of digital assets closely. Importantly, we are most interested in the technology which underpins digital assets, namely the distributed ledger technology.”

The Swiss investment banking behemoth, which has over $1 trillion in assets under management, told Bloomberg that any portfolio allocation to crypto would be small, citing risks related to volatility.

UBS follows the footsteps of several US firms already looking for ways to give access to crypto assets in response to client demand.

In February, Bank of New York Mellon (BNY) became the first global bank to unveil a plan to offer an integrated service for digital assets and traditional finance. BNY, America’s oldest bank, is also working on a prototype of a platform that will allow digital assets to move through the same network that managers use for traditional holdings like Treasury bonds and stocks.

In March, Morgan Stanley followed BNY’s lead, announcing it would offer wealth management clients access to Bitcoin funds.

Hundreds more US banks could soon allow customers to buy, sell, and hold Bitcoin through their current accounts as they collaborate with New York Digital Investment Group (NYDIG) and Fidelity National Information Services (FIS).

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