Switzerland-based bank UBS is reportedly investigating ways to offer its wealthy clients access to cryptocurrencies
In the past year, numerous traditional financial institutions have entered the cryptocurrency space. Some of them offer customers direct or indirect access to cryptocurrencies. UBS could be next in line after sources revealed that the Swiss bank is looking at ways to offer cryptocurrency risk to its clients.
The sources told Bloomberg that UBS wants to offer its wealthy clients access to cryptocurrencies. However, due to their volatility, clients are only allowed to allocate a small portion of their assets to limit their exposure to cryptocurrencies. The sources added that UBS is keeping its options open, one of which allows clients to invest through third-party investment vehicles.
The move will mirror that of Morgan Stanley and Goldman Sachs. The investment banks announced a few weeks ago that their wealthy customers could get access to cryptocurrencies. Morgan Stanley has already started the service while Goldman Sachs intends to start this quarter.
Citigroup and JPMorgan Chase are the other two leading US banks that are reportedly considering similar moves. The sources added that UBS is considering entering the cryptocurrency space due to high demand from its clients.
The high demand for cryptocurrencies and related products is the reason why other leading investment banks have stepped into the crypto space. “We are closely following developments in the field of digital assets. What is important is that we are most interested in the technology on which digital assets are based, namely distributed ledger technology. “ UBS said in a statement.
Bitcoin’s rally over the past twelve months has drawn the attention of retail and institutional investors in various parts of the world. As a result, large numbers of retail and institutional investors have entered the market, making cryptocurrency a $ 2 trillion industry.
UBS could venture into the crypto space to keep up with local rival Julius Baer Group. Julius Baer’s CEO Philipp Rickenbacher announced at a conference last week that the asset manager is working on partnerships that would enable its clients to gain access to cryptocurrencies.