THE UBS IS FINALLY DOWN. TWENTY SWISS BANKS HAVE SECURED $2.5 MILLION IN ENCRYPTED ACCOUNTS. HOUSEHOLD

Photo by Jakub Dziadkowiec

Original language: Deep tide TechFlow

Introduction:& nbsp; UBS, the world's largest wealth management agency, opened bitcoin and ITA transactions for some private bank clients in January 2026. It's not surprising in itself, but it's more interesting in Switzerland: Some 20 Swiss banks now provide encryption services covering over 2.5 million accounts. ZKB's client image data break the stereotypes of "encrypted is a young man's game" and many bank accounts show that encryption is becoming a solid source of profit。

UBS, FINALLY

IN JANUARY 2026, UBS OFFICIALLY OPENED DIRECT TRANSACTIONS IN BITCOIN AND ETHERA TO SOME PRIVATE BANK CLIENTS IN SWITZERLAND。

This is the world ' s largest wealth management agency, which manages more than $4.7 trillion of assets, with a conservative attitude towards encrypted currencies in the past. Axel Weber, former chairman of the Board, publicly stated at the end of 2021 that "anonymous payments will not survive" when Bitcoin was a record high。

The drivers of change are client demand and competitive pressures. Morgan Stanley has opened up all wealth management clients to investments in encrypted funds at the end of 2025 and is no longer restricted to high-risk preferred clients with assets above $1.5 million. Morgan Chase allows some of its clients to use BlackRock's bitcoin spot ETF as collateral for their loans. Even Vanguard, the last anti-encrypted fortress, surrendered in December 2025, allowing clients to trade in encrypted ETF。

UBS IS CURRENTLY SCREENING HOSTING AND IMPLEMENTING PARTNERS, INITIALLY FOR A SMALL PRIVATE CLIENT BASE IN SWITZERLAND. FOLLOW-UP COULD BE EXTENDED TO ASIA-PACIFIC AND UNITED STATES MARKETS。

Switzerland: Global Bank Encrypted Runner

THE ADDITION OF UBS HAS MADE THE ENCRYPTION MAP OF SWISS BANKING MORE COMPLETE. THERE ARE CURRENTLY SOME 20 BANKS IN SWITZERLAND PROVIDING ENCRYPTION SERVICES, THE HIGHEST NUMBER IN THE WORLD. THE UNITED STATES (15 HOUSEHOLDS) AND GERMANY (12 HOUSEHOLDS) ARE BEHIND。

Behind that figure is the size of the users. The Zurich Cantonal Bank (ZKB) and PostFinance provided access to encrypted transactions to over 2.5 million Swiss accounts in 2024。

PostFinance, a Swiss State-owned bank of system importance, opened 36,000 encrypted hosting accounts in the first year of operation and processed more than 565,000 transactions. This number has gone far beyond the “pilot phase”。

Encrypted Buyer: Not what you think

Peter Hubli, director of ZKB digital assets, admitted in an interview with The Big Whale that banks would have expected encrypted customers to be young。

"It was probably the biggest accident on the line. Like many others, we thought we would attract very young clients. But not at all

THE REALITY IS THAT THE AVERAGE AGE OF THE ZKB ENCRYPTED BUYER IS BETWEEN 30 AND 50 YEARS OF AGE, IS PREDOMINANTLY MALE AND IS CONCENTRATED IN PRIVATE RATHER THAN RETAIL BANKING。

A MORE CRITICAL NUMBER: OVER 40% OF ENCRYPTED HOSTING CLIENTS HAD NO PRIOR PORTFOLIO IN ZKB. THEIR CASH HAS BEEN IDLE IN THE ACCOUNTS. THE ENCRYPTION DEAL ACTIVATES A “SLEEP MONEY” THAT WOULD NOT HAVE GENERATED ANY MANAGEMENT INCOME。

The encryption business is already making money

The financial data of several Swiss banks indicate that encryption is no longer a "conceptual validation" stage:

More than 20 per cent of the bank profits of Maerki Baumann came from digital asset operations. Swissquate has about 10% of total income from encryption. Arab Bank Switzerland's encrypted assets represent only 5% of AUM but contribute 7% of net profits。

The scale is small and the share of profits is disproportionate. The unit economy of encryption services is clearly better than traditional banking。

Switzerland is not an isolated case, but a microcosm of the global wave of institutionalization

The Bank of Switzerland's actions are consistent with the trend in global institutional funding. EY-Parthenon and Coinbase conducted a global survey of over 350 institutional investors in January 2026, covering management, family offices and private banks. Seventy-three per cent plan to increase encryption configuration by 2026, and 84 per cent are already using or intentionally exploring stabilization currency。

Trusteeship security and regulatory clarity remain two of the most important concerns of institutional investors. Switzerland has a pre-emptive advantage in these two dimensions: the Distributive Book Technology Act (DLT Act), adopted in 2021, provides the legal framework and bank-level custodians, such as Taurus and Sygnum, provide the infrastructure. The Bank encryption process in Switzerland is essentially a local model of global institutional entry trends。

OECD TAX FRAMEWORK + FINMA LICENSE REFORM: TWO TESTS OF SWISS DOMINANCE

The OECD Encrypted Asset Reporting Framework (CARF) will enter into force on 1 January 2027, ending the era of tax non-transparentity of encrypted assets. The public consultation for the reform of the licensing system of FINMA, which ended in February 2026, will redefine the rules for the hosting and stabilization of currencies, with some provisions aligned with the European MiCA framework。

Cripto Valley Association Board member Ilya Volkov warned that excessive "regulated micromanagement" could erode Switzerland's long-standing practical advantage。

The ability of Switzerland to remain a global leader in 2027 depends on the eventual landing of this round of regulatory reform。