UBS CEO Details Crypto Plans Following Report of Bitcoin, Ethereum Trading for Wealthy Clients

In brief

• UBS Group’s CEO confirmed the company is working on a path to implement tokenized deposits and crypto access for users.
• The firm was recently named an early design partner on Stripe’s stablecoin-focused blockchain, Tempo.
• UBS netted nearly $8 billion in profits last year, but shares have fallen around 6% on Wednesday.

Publicly traded Swiss bank UBS Group AG (UBS) is creating a path to tokenized services and crypto access for its clients, the firm’s CEO confirmed on its Q4 earnings call on Wednesday.  The firm, which manages invested assets of more than $7 trillion, has seen its shares drop around 6% on Wednesday, recently changing hands at $44.79.  “As digital assets become a more relevant part of the financial system, we are taking a focused client-led approach,” CEO Sergio Ermotti said on the call. “We are building out the core infrastructure and exploring targeted offerings, from crypto access for individual clients to tokenized deposit solutions for corporates.” 

Ermotti’s comments come just a few weeks after a report from _Bloomberg _indicated that the banking giant would start to open crypto investing access to select clients in Switzerland, providing them access to Bitcoin and Ethereum.  “The next generation of investors expects a seamless technological experience, and the emergence of digital assets and tokenization is creating opportunities to fundamentally change how we operate,” Ermotti said. “In this context, clients will increasingly place an even higher premium on trusted advice from partners who can offer true global connectivity, access to innovative products, and seamless cross-border solutions,” he added. “UBS is uniquely positioned to convert these trends into stronger profitability and long-term value creation.” The firm is also looking to artificial intelligence to help unlock gains, implementing “AI-enabled capabilities to streamline service and bolster productivity” across its banking operations. Notably, the firm did not mention stablecoins in its quarterly update. However, in December it was named as an early design partner of Stripe’s stablecoin-focused blockchain, Tempo.

UBS, which earned around $7.9 billion in profits last year—a 53% jump year-over-year—became an even bigger player in banking in 2023 when it acquired Switzerland’s other major bank, Credit Suisse.  Last fall, Switzerland’s central bank—Swiss National Bank—reportedly increased its exposure to Bitcoin via the purchase of additional shares in Michael Saylor’s Bitcoin treasury giant, Strategy.