UBS Exploring Ways to Offer Crypto Investments to Rich Clients
One of the core aims of UBS Chief Executive Officer Ralph Hamersб who replaced Sergio Ermotti, is to cut operational costs while digitizing bank’s operations and product offerings.
Swiss multinational investment bank and financial services company UBS Group AG (SWX: UBSG) is reportedly exploring multiple ways to bring crypto investments to its rich clients. Per the report, first revealed by Bloomberg citing sources familiar with the matter, any of the investment alternatives the bank is going to settle for will only take a very small portion of the client’s total wealth holdings due to the extreme volatility of the asset class.
With the growing digital currency ecosystem over the years, a lot of mainstream investment banks and financial institutions are beginning to explore ways to get into the game. Goldman Sachs Group Inc (NYSE: GS) earlier this month launched a Bitcoin (BTC) derivatives product for its customers, establishing its foothold in the over $2 trillion cryptocurrency marketplace. Competing firm, JPMorgan Chase & Co (NYSE: JPM) also unveiled it will let its clients invest in a Bitcoin fund.
While the UBS proposed offering is still unclear at this time, the cited sources noted that it may also involve third-party investment vehicles. A motivation quoted for the crypto investment exploration is a growing interest amongst UBS clients and the fear of losing them to competitors who offer the services in demand.
“We are monitoring the developments in the field of digital assets closely,” UBS said in a statement. “Importantly, we are most interested in the technology which underpins digital assets, namely the distributed ledger technology.”
While UBS is not as upfront with its digital currency pursuits up to this point, the firm is allegedly tilted towards a technological embrace in its overall economic and operational growth.
Crypto Investments Is a Crucial Step in UBS Growth Plans
One of the core aims of UBS Chief Executive Officer Ralph Hamers, who replaced Sergio Ermotti, is to cut operational costs while digitizing bank’s operations and product offerings. As such, the crypto investment move will mark a positive step for the firm’s defined agenda.
Hamers has a track record for digitization and automation while at the helms of affairs at ING Bank from 2013 to 2016. Drawing on this record, he may be more poised to revive UBS’ revenue through the broader prospects in the cryptocurrency ecosystem.
The time is rife, as Bitcoin, Ethereum (ETH), and other digital currencies continue to outgrow mainstream investment assets by multiple factors. Both retail and institutional investors are now in the limelight of the potentials of cryptocurrencies, and the willingness to transfer their portfolios appears more likely than ever before. Should the UBS crypto investments report prove to be true, the bank will join one of the growing numbers of traditional players building the ecosystem to drive the mainstream adoption of Bitcoin and altcoins in general.