The brokerage division of UBS Group has launched a pilot project for the clearing of exchange-traded products in cryptocurrency.
The Swiss bank UBS has embarked on a pilot project, despite the bank’s stated cautious stance on cryptocurrency.
“Regulators have demonstrated that they can and will fight cryptocurrency,” UBS said in a report. “We suggest that investors stay away and build their portfolios around less risky assets.”
Obviously, these concerns did not stop some UBS clients from wanting to participate in the pilot, nor did they deter UBS from considering their commitments. The bank strives not to miss out on a potentially profitable direction, as more and more of its clients seek access to the cryptocurrency space.
The bank has previously stated that it is closely following the development of digital assets and that it is most interested in the technology underlying them, namely distributed ledger technology. A spokesman for UBS declined to comment.
UBS is not the only bank to begin testing cryptoasset banking capabilities. Goldman Sachs and Bank of America have announced a similar pilot for hedge funds. This month, Swiss digital bank Sygnum introduced Ethereum 2.0 staking to its clients, and South Korean bank Woori Bank launched cryptocurrency custody services.
The Swiss bank is currently using a pilot scheme and the issue is under close internal review ahead of a planned wider rollout later in the year.
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