UBS is reportedly considering offering cryptocurrency trading to its private banking clients, signaling a potential shift into digital assets for the world's largest wealth manager. According to a Bloomberg report, the Swiss banking giant, which managed approximately $4.7 trillion in wealth assets as of September 30, is in the process of selecting partners for its crypto offering. These discussions have been ongoing for several months, but a final decision has not yet been made.

Initially, UBS would allow select clients of its private bank in Switzerland to buy and sell Bitcoin and Ether. The offering may then be rolled out in markets like the Asia-Pacific region and the U.S.

This move represents a notable shift for UBS, which has historically maintained a cautious approach toward virtual tokens. However, Wall Street rivals like JPMorgan Chase & Co and Morgan Stanley are expanding in digital assets, potentially putting pressure on UBS to follow suit. Morgan Stanley plans to roll out Bitcoin, Ethereum, and Solana trading for its clients and has also filed for spot Bitcoin, Ethereum, and Solana ETFs, with plans to launch a crypto wallet later this year. JPMorgan already accepts BTC and ETH ETFs as collateral and has tokenized the JPM coin on Base, with plans to expand to the Canton network.

UBS's push deeper into crypto comes partly in response to growing demand for digital assets from wealthy clients. CEO of UBS, Sergio Ermotti, stated that he believes blockchain is the future of the traditional banking business and that there will be a convergence between traditional finance (TradFi) and decentralized finance (DeFi).

A UBS spokesperson stated, "As part of UBS's digital asset strategy, we actively monitor developments and explore initiatives that reflect client needs, regulatory developments, market trends, and robust risk controls". The spokesperson added, "We recognize the importance of distributed ledger technology like blockchain, which underpins digital assets".

Like many other global banks, UBS has until now focused digital-asset efforts on building blockchain-based infrastructure for things like tokenized funds and payments. Using partners could allow the bank to offer trading, custody, and compliance capabilities without building the full stack in-house.