The world's largest asset manager is making a remarkable U-turn. According to Bloomberg, UBS is exploring the launch of crypto trading for select private banking clients in Switzerland. Initially, wealthy clients will be able to buy and sell Bitcoin and Ethereum.
The Swiss banking giant, with around $6.9 trillion in AUM, has been evaluating potential partners for the offering over several months. A final decision is still pending. This move comes years after the bank dismissed digital assets as a "speculative bubble" and warned clients of a total loss.
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From critic to provider
The planned reversal carries significant weight. Few major banks positioned themselves as clearly against cryptocurrencies as UBS. Chairman Axel Weber issued stark warnings about Bitcoin in 2017. Without a central bank controlling supply, he argued, the cryptocurrency was fundamentally flawed. Extreme price volatility made Bitcoin useless as a payment method.
In January 2021, UBS sent warning letters to clients. The bank labeled Bitcoin a "speculative bubble" and warned of potential total loss. Cryptocurrencies offered no portfolio benefits and posed systemic risks, the letter stated. Superior cryptocurrencies could replace Bitcoin at any time, it continued.
As recently as 2024, UBS emphasized interest in blockchain technology but not in cryptocurrencies. The bank drew a clear line between the underlying technology and digital assets as an investment class.
Client pressure forces action
What changed? The answer is simple: client demand. UBS manages around $4.7 trillion in Global Wealth Management alone. Many of these wealthy clients want access to digital assets. And they are ready to switch to competitors if UBS does not provide it. While UBS warned, BlackRock, Fidelity, and VanEck entered the crypto business in a big way. BlackRock's Bitcoin ETF reached over $50 billion in AUM within one year.
Competitive pressure from the US is immense. Morgan Stanley opened crypto access to all wealth management clients in October 2025. In the first half of 2026, the bank also plans to offer direct crypto trading through its E-Trade platform. This could unlock up to $1.3 trillion in trading volume. JPMorgan Chase is also expanding its crypto offering. Bank of America and Wells Fargo already provide wealthy clients with access to Bitcoin ETFs. The friendlier regulatory environment under the Trump administration is accelerating this trend.
UBS simply cannot afford to stand aside. Wealthy clients now expect access to all relevant asset classes. Those who fail to provide it risk outflows.
Late starter in the Swiss market
UBS also lags behind competitors in its Swiss home market. Zuercher Kantonalbank launched Bitcoin and Ethereum trading for retail clients back in September 2024. PostFinance has enabled trading of eleven cryptocurrencies for its 2.5 million clients since 2024 through a partnership with crypto bank Sygnum.
Still, UBS has gained some experience. In September 2025, UBS, PostFinance, and Sygnum jointly tested payments on the Ethereum blockchain. The pilot with so-called deposit tokens is considered a milestone for the Swiss financial center. Banks executed a legally binding payment on a public blockchain for the first time.
UBS has also gained practical experience with tokenized products. Back in November 2023, the bank offered wealthy clients in Hong Kong trading in crypto-linked ETFs. Last year, UBS Asset Management launched a tokenized money market fund on Ethereum.
Ermotti completes paradigm shift
CEO Sergio Ermotti has since adjusted his rhetoric. At this year's World Economic Forum in Davos, he called blockchain "the future of traditional banking." He also predicted a convergence of traditional finance and decentralized technologies.
This is notable because UBS consistently emphasized the distinction between blockchain technology and cryptocurrencies just a few years ago. The bank endorsed the former while rejecting the latter. That dividing line can no longer be maintained today.
At the same time, Ermotti expressed concerns in Davos about quantum computing and its potential impact on cryptocurrency security. This statement shows UBS has not entirely abandoned its critical stance.
Partner model instead of in-house development
UBS is not planning to build its own crypto infrastructure. Instead, the bank is relying on external partners. This reduces development costs and complexity. Which providers will be selected remains open. Sygnum would be an obvious candidate following the successful collaboration on the deposit token pilot.
The launch is set to begin in Switzerland. Bloomberg then names the Asia-Pacific region and the US as potential expansion markets. By starting in its home market, the bank wants to test operational processes first and ensure close regulatory oversight.
Signal to the industry
The entry of the world's largest asset manager would send a strong signal. If even UBS, one of the loudest critics for years, offers crypto trading, this could further accelerate institutional adoption.
The irony is obvious. The bank that warned clients of a Bitcoin total loss in 2021 now wants to profit from the crypto boom itself. Bitcoin has gained hundreds of percent since those warnings. Clients who followed UBS advice missed those returns.
The question remains: Is UBS arriving in time or too late? Crypto bank Sygnum predicts that 2026 will be the year of institutional crypto adoption. UBS is positioning itself to be part of this development. Whether the bank can make up lost ground remains to be seen.
