The influx of traditional banks into the cryptocurrency space has been massive in recent months. The trend seems to continue, and Swiss bank UBS could be the next bank to offer its wealthy clients access to cryptocurrencies.
UBS could offer crypto services due to the high demand
Swiss bank UBS has revealed that it is exploring various ways to offer its clients access to cryptocurrencies. This latest development could make UBS the next high-profile bank to offer such access to its clients.
Bloomberg reported this earlier today, citing people close to the matter. According to the report, the bank is exploring various ways to offer cryptocurrency access to its clients. Bloomberg added that the investment offering would be for wealthy clients. As well, they can only allocate a small portion of their total holdings. This is to reduce the risks associated with cryptocurrencies.
UBS, in a statement, said, “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.”
A source told Bloomberg that the bank is also considering providing the services through third-party investment vehicles. However, they didn’t provide further details on who UBS intends to partner with.
More traditional banks are joining the crypto wagon
If UBS provides this service, it would be similar to what Goldman Sachs and Morgan Stanley are offering their wealthy clients. The investment banks allow their wealthy clients to gain exposure to the leading cryptocurrencies. Likewise, U.S Bank is also offering cryptocurrency services to its clients.
Citigroup and JPMorgan are two other leading investment banks that are also considering granting their wealthy clients access to the digital currencies. UBS’s local rival Julius Baer Group is also planning to enter the cryptocurrency space. The CEO Philipp Rickenbacher disclosed this at a conference last week. He stated that Julius Baer is currently working with partners to offer its clients access to cryptocurrencies.
Cryptocurrency adoption by traditional banks has been significant over the past year. The huge demand for crypto-related services from clients is one of the key reasons financial institutions are starting to enter the market.
Bitcoin’s rally from roughly $7,000 a year ago to an all-time high near $65,000 a few weeks ago has helped convince several retail and institutional investors to enter the market. Bitcoin’s total market cap is now above $1 trillion, making it a very valuable asset for numerous investors.
Source: Cryptonary
