Original author: Jakub Dziadkowiec

Original translation: Shenchao TechFlow

Overview: The world's largest wealth management firm, UBS, has opened up trading for Bitcoin and Ethereum for select private banking clients in January 2026. This in itself isn't surprising, but when you look at the broader picture in Switzerland, it gets more interesting: about 20 banks in Switzerland now offer crypto services, covering over 2.5 million accounts. ZKB's client profile data shatters the stereotype that 'crypto is just a young person's game,' while several banks' financial reports indicate that crypto operations are becoming a solid source of profit.

UBS finally entered the game.

In January 2026, UBS officially opened direct trading of Bitcoin and Ethereum for selected private banking clients in Switzerland.

This global wealth management giant, managing over $47 trillion in assets, has historically held a conservative attitude toward cryptocurrencies. The former chairman Axel Weber publicly stated at the peak of Bitcoin in 2021, 'anonymous payments won't survive.'

The driving force behind the shift comes from customer demand and competitive pressure. Morgan Stanley has opened crypto fund investments to all wealth management customers by the end of 2025, no longer restricted to high-risk clients with assets over $1.5 million. JPMorgan allows some clients to use BlackRock's Bitcoin spot ETF as collateral for loans. Even the last 'anti-crypto bastion,' Vanguard, surrendered in December 2025, allowing clients to trade crypto ETFs.

UBS is currently screening custody and execution partners, initially targeting a small group of private banking clients in Switzerland. Future expansion may include the Asia-Pacific and U.S. markets.

Switzerland: The frontrunner in global bank crypto adoption.

UBS's entry further completes the crypto landscape of Swiss banking. Currently, about 20 banks in Switzerland offer crypto services, the highest in the world. Following are the U.S. (15 banks) and Germany (12 banks).

Behind this number is a solid user base. After launching crypto services in 2024, Zurich Cantonal Bank (ZKB) and PostFinance 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, processing over 565,000 transactions. This number far exceeds the '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 banks initially expected crypto clients to skew younger.

This is probably the biggest surprise of this launch. Like many, we expected to attract a very young customer base. But that's not the case at all.

The reality is: the average age of ZKB crypto buyers is between 30 and 50, predominantly male, concentrated in private banking rather than retail banking.

A more critical number: over 40% of crypto custody clients had no prior investment portfolio at ZKB. Their cash had been sitting idle in accounts. Crypto trading has activated a batch of 'sleeping funds' that would not have generated any asset management income.

Crypto business is already profitable.

Financial reports from several Swiss banks indicate that crypto is no longer in the 'proof of concept' stage.

Maerki Baumann derives over 20% of its bank profits from digital asset business. Swissquote generates about 10% of its total revenue from crypto. Arab Bank Switzerland's crypto assets account for only 5% of AUM but contribute 7% of net profit.

Not large in scale, but profits are disproportionately significant. The unit economics of crypto services are clearly superior to traditional banking.

Switzerland isn't an outlier; it's a reflection of the global institutionalization wave.

The actions of Swiss banks align with the trend of global institutional funds. EY-Parthenon and Coinbase surveyed over 350 institutional investors worldwide in January 2026, covering asset management, family offices, and private banks. 73% plan to increase crypto allocations in 2026, and 84% are already using or intend to explore stablecoins.

Custody security and regulatory clarity remain the top two concerns for institutional investors. Switzerland has a first-mover advantage in these dimensions: the Distributed Ledger Technology Act (DLT Act) passed in 2021 provides a legal framework, and bank-grade custodians like Taurus and Sygnum offer the necessary infrastructure. The crypto adoption process in Swiss banks is essentially a local model of the global institutional entry trend.

OECD tax framework + FINMA licensing reform: two tests for Switzerland's competitive edge.

The OECD's Crypto Asset Reporting Framework (CARF) will take effect on January 1, 2027, ending the tax opacity era for crypto assets. The public consultation for the FINMA licensing reform closed in February 2026 and will redefine custody and stablecoin rules, aligning some terms with the European MiCA framework.

Ilya Volkov, board member of the Crypto Valley Association, warned that excessive 'regulatory micromanagement' could erode Switzerland's long-standing pragmatic advantages.

Whether Switzerland can maintain its global lead in 2027 depends on how this round of regulatory reforms is ultimately implemented.