UBS Mulls Offers Top-Rated Crypto ETP Brokerage Services to European Hedge Funds: Sources

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The UBS Group’s main brokerage unit has started offering clearing and settlement of crypto exchange traded products (ETPs) to a very limited number of clients, according to two people familiar with the matter.

The Swiss bank is running a pilot program and the matter is under internal review, ahead of a wider rollout planned for later in the year, one of the sources said.

UBS is not alone in making such a decision. Goldman Sachs and Bank of America, as CoinDesk reported last week, have also offered clearing and settlement of cryptocurrency ETPs for hedge funds, as financial institutions continue to take interim measures towards the adoption of crypto. Banks are keen to avoid missing out on a potentially lucrative source of income as more and more clients seek access to the industry.

Bank of America has also approved bitcoin futures trading for certain clients and is clearing cash-settled contracts.

For UBS, the latest development comes despite the company’s caution about crypto. In a recent note to clients, UBS raised concerns about the nature of the crypto markets and recent regulatory developments.

Regulators have shown they can and will crack down on crypto, UBS said in a report. We suggest investors stay clear and build their portfolios around less risky assets.

Clearly, these concerns have not stopped some UBS clients from wanting to join the action or dissuaded UBS from considering forcing them.

A spokesperson for UBS declined to comment.

Previously, the bank said it was closely following developments in digital assets and was more interested in the technology behind digital assets, namely distributed ledger technology.

Bitcoin, the world’s oldest crypto, climbed back above $ 40,000 this week, following a later denied report that Amazon was looking to accept bitcoin payments by the end of the year. year and also planned to mint its own token by 2022.

Despite our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true, an Amazon spokesperson told CoinDesk via email on Monday. Separately, Amazon said last week that it was looking to hire a digital currency and blockchain product manager.

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