UBS CEO Sergio Ermotti said Wednesday the bank is exploring cryptocurrency access for private clients while building tokenized deposit infrastructure.
The announcement came as the Swiss bank reported a 53% rise in full-year net profit to $7.8 billion.
"We are building out the core infrastructure and exploring targeted offerings from crypto access for individual clients to tokenized deposit solutions for corporates," Ermotti said during the earnings call.
The bank adopted a "fast follower" strategy on tokenized assets with rollout plans spanning three to five years. Ermotti said UBS will not be a "front runner" in implementing blockchain-based technology.
What Happened
UBS reported Q4 net profit of $1.2 billion, up 56% year-over-year. Group invested assets exceeded $7 trillion for the first time, rising 15% annually.
The bank is selecting partners for a potential crypto trading platform according to Bloomberg reports in January. Initial rollout could start in Switzerland for select wealthy clients.
UBS already operates a tokenized money market fund on Ethereum and allowed Hong Kong clients to trade crypto futures-based ETFs in 2023. The bank previously focused on tokenization rather than spot crypto trading.
Read also: Galaxy Digital Client's $9B Bitcoin Sale Reignites Quantum Computing Debate
Why It Matters
The move contrasts with UBS's earlier skepticism toward cryptocurrencies. In 2017, senior officials including global chief economist Paul Donovan criticized bitcoin and questioned its function as money.
Other major banks have advanced similar infrastructure-focused plans recently. Barclays purchased a stake in stablecoin settlement startup Ubyx this year after joining a 10-bank consortium exploring a joint stablecoin in October 2024.
Morgan Stanley and Standard Chartered outlined plans to expand crypto trading and prime brokerage services for institutional and high-net-worth clients in recent months.
UBS's digital asset expansion complements its core wealth management business according to Ermotti. The bank manages more than $7 trillion in client assets.
Read next: White House Stablecoin Summit Ends Without Deal On Yield Rewards