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May 10, 2021
Comments Off on UBS In-Line to Offer Wealthy Clients with Access to Cryptocurrencies
Bitcoin’s high altitude bull run is attracting the worst of its critics. Some Banks left no page unturned for bashing BTC a few years back. And the same institutes are now finding ways to get their hands on its green numbers. Recently, the Swiss Fin corp. giant UBS is planning to enter the market by enabling digital investments. Like other players, they will accept investments from only affluent, aka well-off clientele. Where UBS will provide them with a window for investing in crypto assets.
They are in search of alternatives that were used to provide similar options. This offering will be limited to a handful of clients with the help of 3rd party investments. Before this, Goldman Sachs opened doors for investors to get their hands on BTC as well. Some of the other names include the likes of Deutsche Bank, BNY Mellon.
How is UBS approaching this?
The institution has already disclosed its plan to the media houses. Here they highlight the high volatility risk which surrounds the investments. Due to which only people under a certain amount of bracket will be allowed to trade. UBS clarifies, they will allow only a negligible percentage of wealth for investments. UBS did not disclose their ways and only revealed this would be done via 3rd party ventures.
In 2017, UBS’s Chairperson openly bashed the legitimacy of bitcoin along with critics. Where he stated, investing in BTC will be a stupid decision made by uneducated gentlemen. But as we see rapid growth, bitcoin is binding even the likes of UBS to open the doors for BTC.
In a statement, UBS disclosed that they are monitoring the asset class very closely. The company states they are looking to explore technology backing these digital assets. They also revealed their interest in the tech behind its distributed ledger.
He further added that the price has already crossed the line we assigned. He also explained there were reasons we did not want to get involved in cryptocurrencies. But now, we are most interested in the technology which is powering such operations.
Goldman Sachs ready to extend their market
Many prominent financial institutes are eagerly venturing to buy crypto assets. After witnessing the outburst of BTC, banks were fond of being mere spectators.On Friday, Goldman Sachs global head Mathew McDermott revealed another insight. He said the bank is looking to extend its investments to non-deliverable forwards. It is a type of BTC-backed instrument.
Alongside this development, we are also noticing Citi Group making its moves. As they are also targeting institutions by offering crypto-related services. Citi’s global head revealed that the bank is looking to get involved in crypto services in an interview. With this, Citi will be in line with other major banks, including JP Morgan and Morgan Stanley. In addition, both of these banks have already started their investment services.
