Another multinational bank adopts? UBS Group rumored to offer cryptocurrency investment services

In the past few months, not only have institutions announced the adoption of Bitcoin payments and inclusion in their balance sheets, but various banks have also actively involved in the cryptocurrency sector. Following Goldman Sachs, Morgan Stanley, and JPMorgan Chase, it is rumored that UBS Group plans to provide related cryptocurrency investment services to high-net-worth clients.

UBS Group AG

Formerly known as Winterthur, UBS Group was established in 1862 and is a multinational investment bank based in Switzerland. It is the largest banking institution in the country with assets under management of $3.5 trillion, ranked 330th globally by market capitalization, and also has a presence in Taiwan.

UBS Group is renowned for its strict data confidentiality policy and culture of secrecy. Although its encryption initiatives are still in the early stages, they have attracted significant attention.

UBS Follows the Bitcoin Trend

Bloomberg reported that UBS is considering allowing high-net-worth clients to invest in cryptocurrencies through third-party investment vehicles. To mitigate the risks associated with the high volatility of cryptocurrencies, investments will be restricted based on the proportion of the clients' total assets.

In a statement, UBS Group mentioned:

We are closely monitoring developments in the digital asset space, with a particular interest in the technology behind digital assets, namely Distributed Ledger Technology.

Just last month, Ethereum developer ConsenSys announced a $65 million funding round to accelerate DeFi and Web3 applications on Ethereum, as well as their integration with enterprise blockchain infrastructure, in which UBS Group participated.

First Steps for Banking Institutions – Targeting High-Net-Worth Clients

Institutions that previously dismissed Bitcoin as not belonging to any asset class are now making moves in the cryptocurrency space:

• JPMorgan: Bitcoin actively managed fund for high-net-worth clients, cryptocurrency sector stocks
• Fidelity Investments: Applied for ETF Wise Origin Bitcoin Trust
• Goldman Sachs: Bitcoin non-deliverable forward contracts, applied for ETF linked notes
• Morgan Stanley: Galaxy Bitcoin Fund/FS NYDIG Select Fund for high-net-worth clients

In addition, Wall Street giants like BlackRock are planning to enter Bitcoin futures, and research institutions under Citigroup frequently publish research on DeFi, Bitcoin, and related topics.