Union Bank of Switzerland, a Swiss multinational investment bank and financial services company, has launched its clearing and settlement services of crypto exchange-traded products (ETPs) to clients in Europe, according to a report by Coindesk.
According to the reports, its clearing and settlement services are restricted to a few European hedge funds that trade ETPs. It is currently operating on a pilot scheme and will be subject to internal review before launching a full rollout by the end of 2021.
UBS isn’t alone in this offering as US financial giants like Goldman Sachs and Bank of America have also started providing similar services to hedge funds in Europe. New interest in this market suggests the entry of traditional institutions into the crypto-space.
Currently, several cryptocurrencies ETPs are available for trading in Europe such as Bitcoin and Ethereum. The latest additions to the market are Cardano, XRP, Solana, and Polkadot. All these are listed on the German and Swiss stock exchanges.
In May, Bloomberg reported that UBS is considering providing crypto-related services to wealthy customers. It came as a surprise since UBS has been vocal about concerns over the volatility of crypto-markets and the latest strings of tightening regulatory developments. They warned their investors to steer clear from crypto and ‘build their portfolio around less risky assets’.
Despite these warnings, many investors showed interest in the crypto-space which might’ve been the reason UBS shifted its view on this new financial market.