UBS clients are allocating up to 5% of their assets into crypto as part of broader portfolio diversification strategies.
Tokenized investment platforms like UBS Tokenize enable regulated exposure to digital assets within traditional wealth frameworks.
Younger investors are driving crypto adoption, viewing blockchain as a growth opportunity beyond its role as an inflation hedge.
UBS has confirmed that its high-net-worth clients are now allocating up to five percent of their portfolios to cryptocurrencies. This trend reflects a growing shift in portfolio diversification strategies, as investors respond to rising inflation and increasing volatility in global currencies.
Digital assets have now become as viewed as legitimate instruments for use in hedging inflation as determined by the UBS 2025 Global Investment Returns Yearbook. According to the report, cryptocurrencies have low correlation with traditional markets thus can be used to diversify. Investors are now turning to the new generation of investments beyond traditional non-correlated assets like real estate or commodities, embracing crypto as a component of diversified wealth management.
Modern portfolios adopt tokenized exposure
UBS has unveiled UBS Tokenize among other things to provide crypto exposure via regulated means. This platform allows clients to invest in tokenized forms of the tradable financial products, such as bonds and funds. UBS prioritizes compliance and managed crypto assets’ access to digital assets but still exercises a conservative approach to direct crypto trading.
UBS has observed that younger wealthy clients are more inclined to invest in blockchain-related assets. They consider cryptocurrency not only a hedge but also a long-term opportunity. This generational divide is helping to normalize crypto investments in traditional wealth planning frameworks, influencing how portfolios are structured across age groups.
Industry experts signal changing risk outlook
Legal expert John E. Deaton has highlighted the shifting perception of risk regarding crypto investments. He stated that avoiding crypto entirely could now be seen as a greater risk than having modest exposure. This aligns with UBS’s findings and supports the notion that small crypto allocations are increasingly part of mainstream portfolio planning.
Although known for its conservative approach, UBS still adjusts to the needs of the clients by implementing secure and regulated digital asset solutions. By being tokenization and savvy exposure-oriented, the bank makes sure that its clients enjoy the advantage of innovation without compromising on the strong risk-restriction standards.
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