Author: Jakub Dziadkowiec
Compiled by: Deep Tide TechFlow
Deep Tide Guide: UBS, the world's largest wealth manager, opened Bitcoin and Ethereum trading for some of its private banking clients in January 2026. This development is not surprising in itself, but it becomes more interesting when viewed in the context of Switzerland as a whole: approximately 20 Swiss banks now offer crypto services, covering over 2.5 million accounts. Customer profile data from ZKB breaks the stereotype that "crypto is a young person's game," while financial reports from several banks show that crypto business is becoming a tangible source of profit.
UBS Has Finally Entered the Game
In January 2026, UBS officially opened direct trading of Bitcoin and Ethereum for some of its private banking clients in Switzerland.
This wealth management giant, which oversees over $4.7 trillion in assets, had maintained a relatively conservative stance towards cryptocurrencies in the past. Former Chairman Axel Weber publicly stated when Bitcoin hit its all-time high in late 2021, "Anonymous payments won't survive."
The shift is driven by client demand and competitive pressure. Morgan Stanley had already opened access to crypto funds for all its wealth management clients by the end of 2025, removing the restriction to high-risk-tolerance clients with assets over $1.5 million. JPMorgan Chase allowed some clients to use BlackRock's spot Bitcoin ETF as loan collateral. Even the final "anti-crypto fortress," Vanguard, capitulated in December 2025 by allowing clients to trade crypto ETFs.
UBS is currently selecting custody and execution partners, and the initial offering is limited to a small group of private banking clients in Switzerland. Expansion into the Asia-Pacific and US markets may follow.
Switzerland: The Global Leader in Bank Crypto Adoption
UBS's entry completes Switzerland's banking crypto landscape. Currently, about 20 Swiss banks offer crypto services, the highest number globally. Following behind are the United States (15 banks) and Germany (12 banks).
This number represents a substantial user base. Since launching crypto services in 2024, Zürcher Kantonalbank (ZKB) and PostFinance have together provided crypto trading access to over 2.5 million Swiss accounts.
PostFinance, a systemically important state-owned bank in Switzerland, opened 36,000 crypto custody accounts in its first year and processed over 565,000 transactions. This number is far beyond a "pilot phase."
Crypto Buyer Profile: Not What You Think
Peter Hubli, Head of Digital Assets at ZKB, admitted in an interview with The Big Whale that the bank initially expected its crypto clients to be younger.
"That was probably the biggest surprise of this launch. Like many others, we assumed it would attract a very young clientele. But it was completely different."
The reality is: The average age of ZKB crypto buyers is between 30 and 50, predominantly male, and concentrated in private banking rather than retail banking services.
An even more crucial figure: Over 40% of crypto custody clients had no investment portfolio with ZKB previously. Their cash had been sitting idle in their accounts. Crypto trading activated a pool of "sleeping capital" that otherwise would not have generated any asset management revenue.
The Crypto Business Is Already Profitable
Financial data from several Swiss banks indicates crypto is no longer in a "proof-of-concept" phase:
Over 20% of Maerki Baumann's bank profits come from digital asset business. Crypto contributes about 10% of Swissquote's total revenue. At Arab Bank Switzerland, crypto assets constitute only 5% of AUM but contribute 7% of net profit.
Despite the small scale, the profit share is disproportionately high. The unit economics of crypto services are clearly superior to traditional banking operations.
Switzerland Is Not an Isolated Case, But a Microcosm of the Global Institutionalization Wave
The moves by Swiss banks align with global institutional capital trends. EY-Parthenon and Coinbase surveyed over 350 institutional investors globally in January 2026, covering asset managers, family offices, and private banks. 73% plan to increase their crypto allocations in 2026, and 84% are already using or exploring stablecoins.
Custody security and regulatory clarity remain the top two concerns for institutional investors. Switzerland has a first-mover advantage on both dimensions: The Distributed Ledger Technology (DLT) Act passed in 2021 provides a legal framework, and bank-grade custodians like Taurus and Sygnum provide the infrastructure. The process of bank crypto adoption in Switzerland is essentially a local case study of the global institutional entry trend.
OECD Tax Framework + FINMA License Reform: Two Challenges for Switzerland's Edge
The OECD's Crypto-Asset Reporting Framework (CARF) will come into effect on January 1, 2027, ending the era of tax opacity for crypto assets. The public consultation for FINMA's license system reform closed in February 2026; it will redefine custody and stablecoin rules, aligning some provisions with the European MiCA framework.
Crypto Valley Association board member Ilya Volkov warned that excessive "regulatory micromanagement" could erode Switzerland's long-standing pragmatic advantage.
Whether Switzerland can maintain its global lead by 2027 will depend on the final form of this regulatory reform.
