UBS, the world’s largest global wealth manager, is reportedly exploring offering crypto trading to select private banking clients, beginning in Switzerland. Sources familiar with the matter indicate Bitcoin and Ether could be the initial assets available, with a potential expansion to the Asia-Pacific region and the United States in the future. The bank is reportedly in the process of selecting partners to support the offering, though no public confirmation has been issued.

The initiative aligns with UBS’s broader blockchain strategy, which includes tokenization pilots such as the uMINT tokenized US dollar money market fund on Ethereum and Swift-UBS-Chainlink settlement trials.

On the payments front, UBS has collaborated with Ant International to trial tokenized deposits for cross-border treasury flows via its UBS Digital Cash platform in Singapore, enabling real-time liquidity transfers across Alipay+ networks. These experiments suggest the bank is positioning tokenized assets and blockchain rails as complementary infrastructure to traditional banking services.

Institutional and Market Context

UBS’s potential move follows a broader trend among global financial institutions. JPMorgan is already exploring crypto trading for institutional clients, while BlackRock and Fidelity have emerged as major issuers of spot Bitcoin and Ether ETFs. Vanguard recently reversed its longstanding reluctance and now offers crypto ETFs to clients, marking a shift across Wall Street toward embracing digital assets.

With approximately $4.7 trillion in assets under management as of September 2025, UBS could offer ultra-high-net-worth clients a proprietary on-ramp to crypto markets, strengthening its competitive position among private banks seeking to integrate digital assets into client portfolios.

The move would also reflect regulatory and institutional confidence in managed crypto exposure for select clients, complementing UBS’s ongoing experimentation with blockchain settlement and tokenization in both traditional and digital financial products.

Crypto regulation is poised to move from discussion to execution in 2026, according to PwC’s Global Crypto Regulation Report, marking a shift that could reshape market dynamics, stablecoin frameworks, and institutional participation. The firm predicts that jurisdictions with clear and transparent rules will capture capital and credibility, while cross-border coordination will enhance market integrity and investor protection.

PwC highlights that the global regulatory environment is transitioning from debate to operational enforcement. Increased coordination between jurisdictions is accelerating institutional adoption of digital assets while raising compliance costs for market participants. Regulation is actively reshaping markets and enabling digital assets to scale responsibly.

Jurisdictional Developments and Compliance Trends

In the European Union, firms are adapting to the Markets in Crypto-Assets (MiCA) regulation, which sets requirements for authorization, reserves, and governance. Preparations for a potential digital euro are also underway, positioning the EU at the forefront of regulated digital finance. In contrast, the US faces delays on the CLARITY Act amid debate over stablecoin yields, with policy discussions emphasizing dollar-pegged crypto payments and maintaining global dollar dominance.

The UK is advancing a full authorization regime under the Financial Services and Markets Act (FSMA), introducing dual oversight for payment stablecoins via the Financial Conduct Authority and the Bank of England. Meanwhile, jurisdictions, including the United Arab Emirates and Switzerland, are solidifying regulatory frameworks for virtual assets, creating multiple competitive hubs for compliant crypto activity.

For market participants, the evolving landscape means higher compliance costs but also greater clarity that could unlock banking access, product innovation, and deeper institutional engagement. The winners will be those who build compliance, resilience, and transparency into their core operations.

Institutional Implications and Market Outlook

PwC emphasizes that regulatory clarity will support institutional growth while maintaining safeguards against financial crime. Coordinated rules are expected to facilitate interoperability, protect investors, and encourage responsible innovation. The firm views 2026 as a pivotal year when enforceable crypto frameworks will define which markets lead in legitimacy, market access, and investor trust.

As global stablecoin activity, tokenized assets, and blockchain adoption expand, companies and investors will increasingly navigate regulated environments that balance innovation with oversight, making compliance and transparency central to long-term market positioning

Coinbase has established an independent expert advisory board to assess how advances in quantum computing could eventually affect Bitcoin and the broader blockchain ecosystem. The initiative reflects growing institutional awareness that, while quantum threats remain theoretical, preparation must begin well before the technology reaches practical scale.

In a recent blog post, the exchange said the board will evaluate emerging risks and publish guidance for developers, institutions, and policymakers. Coinbase emphasized that large-scale quantum computers capable of undermining today’s cryptographic systems do not yet exist, but warned that waiting until the threat becomes immediate would be too late for systems securing trillions of dollars in digital assets.

Assessing Long-Term Cryptographic Risk

Most major blockchains, including Bitcoin and Ethereum, rely on elliptic-curve cryptography to secure transactions and wallet ownership. While widely considered secure against classical computing attacks, these cryptographic schemes could become vulnerable if sufficiently powerful quantum computers are developed. Such machines could theoretically derive private keys from public addresses, compromising asset security.

Coinbase said the newly formed Coinbase Independent Advisory Board on Quantum Computing and Blockchain will focus on translating academic research into practical planning. The group will publish position papers evaluating the pace of quantum advances and outlining potential mitigation strategies, including transitions to quantum-resistant cryptography. The board is expected to issue analysis when major breakthroughs occur, helping the industry distinguish between credible risks and speculative concerns.

Industry Expertise and Institutional Signaling

The advisory board brings together prominent figures across cryptography, quantum computing, and blockchain research. Members include University of Texas at Austin quantum computing researcher Scott Aaronson, Stanford cryptography professor Dan Boneh, Ethereum Foundation researcher Justin Drake, EigenLayer founder Sreeram Kannan, and Coinbase head of cryptography Yehuda Lindell, among others.

Coinbase said the board will operate independently, underscoring its intention to contribute broadly to industry preparedness rather than advance proprietary solutions. The exchange plans to publish the board’s first position paper early next year, offering a baseline assessment of quantum-related risks and potential paths toward long-term resilience.

The move aligns with broader institutional efforts to future-proof financial infrastructure. Governments, banks, and technology firms have increasingly begun exploring post-quantum cryptography standards, recognizing that upgrades to core security systems often require years of coordination and testing.

Strategic Context for Crypto Markets

Coinbase’s initiative comes as digital assets gain deeper integration with traditional finance through exchange-traded products, custody services, and tokenization of real-world assets. As crypto infrastructure becomes more systemically important, questions around long-term security are drawing closer scrutiny from regulators and institutional investors.

The exchange has framed its quantum preparedness alongside a broader push to expand access to global capital markets through blockchain-based systems. Together, these efforts signal a strategic emphasis on positioning crypto infrastructure as durable, regulated, and compatible with long-term financial planning.

While quantum computing remains years away from posing a direct threat, Coinbase’s move highlights a shift in the industry’s posture-from short-term innovation cycles toward managing low-probability but high-impact technological risks.

At the World Economic Forum in Davos, tokenization emerged as a central theme as policymakers, banks, and crypto executives debated how digital assets should integrate into the global financial system. Participants broadly agreed that tokenization has moved beyond experimentation into early deployment, but sharp differences surfaced over governance, monetary sovereignty, and the role of Bitcoin and central bank digital currencies (CBDCs).

Senior banking executives pointed to live pilots as evidence of institutional momentum. Banque de France Governor François Villeroy de Galhau cited a €300 billion tokenized commercial paper initiative as an example of how blockchain could reduce settlement costs and improve delivery-versus-payment efficiency. Euroclear Chief Executive Valérie Urbain framed tokenization as an extension of existing market infrastructure that could widen investor access without displacing regulated intermediaries.

Competing Monetary Frameworks Take Shape

The most visible fault line emerged around monetary architecture. Coinbase Chief Executive Brian Armstrong argued that tokenization paired with a Bitcoin-anchored system could expand access to high-quality financial assets for billions of unbanked adults. He characterized Bitcoin as an inflation-resistant foundation for a new monetary order, reflecting private-sector frustration with rising deficits and fiat currency dilution.

Central bankers pushed back forcefully. Villeroy warned that ceding monetary authority to private tokens risks undermining democratic accountability and financial stability. He emphasized that money remains a public-private partnership, with CBDCs acting as a regulated anchor alongside tightly supervised private stablecoins. Without guardrails, he argued, tokenized private money could dominate transactions while public money becomes a passive store of value.

Stablecoins, Regulation, and Competitive Pressure

Ripple Chief Executive Brad Garlinghouse highlighted stablecoins as tokenization’s most immediate success, noting that transaction volumes have expanded rapidly alongside increased institutional usage. He pointed to growth in tokenized assets on public blockchains as evidence that regulated onchain finance is gaining traction, even as regulatory frameworks lag behind innovation.

The discussion reflected broader regulatory friction, particularly in the United States and Europe, where lawmakers continue to debate stablecoin oversight, yield features, and disclosure requirements. Industry leaders argued that restrictive rules risk pushing activity offshore, while regulators stressed the need to prevent systemic risks from untested financial structures.

Emerging Markets and Systemic Implications

Emerging markets featured prominently in the debate. Standard Chartered Chief Executive Bill Winters cautioned that tokenization could accelerate dollarization in some economies, even as it lowers cross-border transaction costs. Central bankers from developing regions remain wary of surrendering monetary control, despite acknowledging efficiency gains from digital settlement technologies.

The Davos debate unfolded as crypto markets remained near multi-year highs, underscoring the urgency of these policy decisions. With tokenized finance already operating at scale, the challenge facing regulators and institutions is no longer whether tokenization will advance, but who sets the rules governing its future.

Vietnam has taken a decisive step toward regulating its cryptocurrency market by introducing a pilot licensing regime for crypto asset trading platforms. Under a decision issued this week by the Ministry of Finance, authorities established procedures for issuing, modifying, and revoking licenses for exchanges, ending years of legal ambiguity in which crypto trading was widely tolerated but not formally governed.

The new framework places crypto exchanges under the supervision of the State Securities Commission, which has released detailed guidance on application requirements and compliance processes. The move follows the implementation of the Law on Digital Technology Industry, which came into effect on January 1, 2026, formally bringing digital assets within Vietnam’s regulatory perimeter.

Banks and Securities Firms Line Up for Entry

The pilot program has already drawn interest from traditional financial institutions. Roughly 10 securities firms and banks have announced plans to apply for licenses, reflecting growing institutional appetite for regulated crypto exposure. Securities firms, including SSI Securities and VIX Securities, have established digital asset subsidiaries and exchange ventures, often in partnership with domestic technology firms and global blockchain players.

Banks are pursuing parallel strategies. MBBank has signed a technical cooperation agreement with Dunamu, the operator of Upbit, to explore launching a regulated exchange, while Techcombank and VPBank have set up crypto-focused entities in anticipation of regulatory approval. Their participation underscores how Vietnam’s crypto market is shifting from informal retail activity toward institution-led platforms.

Participation in the pilot comes with high barriers to entry. Applicants must be Vietnamese enterprises with a minimum paid-in charter capital of VND10 trillion, or roughly $380 million, primarily funded by institutional investors. They must also meet strict standards for governance, cybersecurity, infrastructure, and staffing, including the use of licensed securities professionals.

Market Growth and International Interest

Vietnam’s regulatory push follows rapid growth in crypto usage. Data from Chainalysis estimates that crypto transaction volumes in the country reached between $220 billion and $230 billion from mid-2024 to mid-2025, placing Vietnam among the largest crypto markets in the Asia-Pacific region. Until recently, much of this activity operated outside a clear legal framework, raising concerns around investor protection and systemic risk.

The shift toward formal licensing has also attracted attention from global crypto firms. Stablecoin issuer Tether has identified Vietnam as a strategic market, citing strong remittance flows, a young population, and accelerating digital adoption. Vietnamese officials have emphasized that the new framework is designed to foster a professional, well-regulated investment environment capable of attracting international capital.

By piloting crypto exchange licenses with strict institutional standards, Vietnam is signaling a cautious but structured approach to digital assets. The framework reflects a broader regional trend toward integrating crypto markets into existing financial oversight, balancing innovation with tighter control as adoption continues to expand.

Argentine crypto exchange Ripio is increasing its focus on local currency stablecoins and tokenized sovereign debt as it prepares for what it expects will be a subdued year for broader crypto markets in 2026. CEO Sebastián Serrano described the coming year as likely to be “lateralized,” while expressing confidence that stablecoins will drive a decade-long expansion in tokenized finance across Latin America.

Founded in 2013, Ripio has evolved from a retail-focused exchange into a business-to-business infrastructure provider serving banks, fintech firms, and large platforms such as Mercado Libre. The company now issues its own dollar-backed stablecoin, Criptodólar (UXD), alongside a growing suite of local fiat-pegged tokens, including Argentina’s peso-backed wARS, Brazil’s wBRL, and Mexico’s wMXN.

Local Stablecoins and Tokenized Debt Use Cases

Ripio has also launched a tokenized version of Argentina’s most actively traded sovereign bond, AL30, which Serrano said saw more than one million units traded during the country’s October 2025 election weekend. He argues that highly liquid instruments such as government debt are natural early candidates for tokenization, following the initial adoption of dollar-backed stablecoins.

The local stablecoins are live across Ethereum, Base, and World Chain, with early transaction volumes showing gradual adoption. Ripio is targeting at least $100 million in assets under management for its local currency stablecoins by the end of the year. The firm is pairing these tokens with virtual local bank accounts to simplify onboarding and reduce foreign exchange friction for users entering crypto markets.

This approach reflects broader challenges in emerging markets, where converting local currency directly into dollar stablecoins often results in immediate FX losses. By allowing one-to-one conversion into peso- or real-backed tokens, Ripio aims to improve usability and lower barriers to entry for non-dollar economies.

Institutional Context and Long-Term Strategy

Serrano views local stablecoins as essential infrastructure for decentralized lending in countries where incomes and liabilities are denominated in local currencies. He argues that borrowing in dollar-pegged stablecoins introduces unnecessary FX risk for users in volatile monetary environments. Tokenized local debt and currency-backed stablecoins, he said, better reflect real economic conditions.

Ripio’s strategy also reflects a competitive pivot away from direct retail competition with global exchanges. Instead, the firm is positioning itself as a behind-the-scenes provider of tokenization and payments infrastructure. Against a backdrop of improving macroeconomic conditions in Argentina but limited domestic crypto policy focus, Ripio is aligning its growth with regional demand for stable, localized digital money.

Trump Media and Technology Group said it has set February 2, 2026, as the record date for its previously announced digital token initiative, marking the company’s latest effort to integrate blockchain-based incentives into its shareholder engagement strategy. The company said ultimate beneficial owners and registered holders of at least one whole share of DJT stock as of that date will be eligible to receive digital tokens and related rewards. The announcement positions the initiative as a shareholder-focused program rather than a capital markets transaction.

The company noted that shareholder eligibility could be affected by brokerage classifications, particularly for investors designated as objecting beneficial owners. Trump Media encouraged shareholders to confirm non-objecting status with their brokers or consider direct registration through its transfer agent to ensure timely participation. The emphasis on ownership transparency reflects a broader push by public companies to better understand shareholder composition amid increasingly fragmented custody structures.

Token Structure and Distribution Framework

Following the record date, Trump Media plans to work with Crypto.com to mint the digital tokens, record them on a blockchain, and custody the assets prior to distribution. The company said additional details on allocation mechanics and delivery timing will be provided after the record date. The tokens are not expected to represent equity ownership, voting rights, or a claim on company profits.

Trump Media emphasized that the tokens are intended to function as non-transferable digital credentials rather than tradable assets. The company also stated that the tokens will not be redeemable for cash and will only be distributed to qualifying shareholders, excluding stock borrowers. This structure appears designed to align with existing securities guidance while avoiding classification as investment contracts.

Strategic and Regulatory Context

Chief Executive Devin Nunes said the initiative is structured to comply with Securities and Exchange Commission guidance, while also enhancing transparency around beneficial ownership. The partnership with Crypto.com places Trump Media among a growing number of public companies experimenting with blockchain infrastructure for shareholder engagement, loyalty programs, and identity verification.

Institutionally, the initiative reflects a wider trend of tokenization being explored outside traditional capital formation, particularly as regulators continue to scrutinize crypto-related offerings. Competitive pressure from other media and technology firms experimenting with digital assets may also be shaping Trump Media’s approach, especially as it expands its ecosystem across social media, streaming, and financial services.

The company added that record-date shareholders may periodically receive additional rewards throughout the year, potentially linked to its platforms Truth Social, Truth+, and Truth Predict. While details remain limited, the initiative underscores how blockchain tools are increasingly being positioned as supplemental engagement mechanisms rather than speculative products

A Hong Kong securities industry association has raised objections to proposed changes in the city’s regulatory framework for digital asset management, arguing that the measures could deter traditional asset managers from entering the crypto space. In a submission to regulators on January 20, the Hong Kong Securities and Futures Professionals Association said the proposals risk imposing disproportionate compliance burdens on firms with minimal exposure to cryptocurrencies.

The concerns focus on plans to tighten licensing requirements for asset managers handling virtual assets, part of a broader effort by authorities to strengthen oversight of the sector. While the association said it supports regulatory clarity and investor protection, it warned that overly rigid rules could undermine Hong Kong’s competitiveness as an international financial center. The group emphasized that traditional managers often seek limited crypto exposure as part of diversified portfolios rather than full-scale digital asset strategies.

De Minimis Threshold at the Center of Debate

At the core of the industry’s pushback is a proposal to remove the existing de minimis threshold for Type 9 licensed managers. Under current rules, firms holding a Type 9 license, which covers discretionary portfolio and asset management, may allocate less than 10% of a fund’s gross asset value to crypto assets without obtaining an additional virtual asset license, provided regulators are notified.

The proposed changes would eliminate that flexibility, requiring a full virtual asset management license for any level of crypto exposure, even allocations as small as 1%. The association described this approach as all-or-nothing and argued that it fails to reflect the actual risk profile of limited allocations. According to the group, the change could discourage asset managers from experimenting with digital assets and slow the integration of crypto into mainstream investment products.

Legal experts have also noted that the proposal would represent a material expansion of the regulatory perimeter. Asset managers currently operating outside the Type 9 framework, including firms managing portfolios entirely composed of digital assets, could be brought under new licensing obligations, significantly increasing compliance costs and operational complexity.

Custody Rules and Broader Market Implications

Beyond licensing thresholds, the association criticized proposed custody requirements that would mandate virtual asset managers to use only custodians licensed by the Securities and Futures Commission. It warned that such restrictions could be impractical for private equity and venture capital funds investing in early-stage tokens not supported by local custodians. The group said the rule could limit Hong Kong’s ability to host Web3-focused venture funds and push activity to other jurisdictions.

At the same time, the association expressed conditional support for allowing self-custody and the use of qualified offshore custodians when serving professional investors. It framed these options as necessary to preserve flexibility while maintaining safeguards.

The debate unfolds as Hong Kong accelerates efforts to position itself as a regional crypto hub, with licensing regimes already in place for trading platforms and stablecoin issuers. Industry participants say the outcome of the consultations will signal whether the city can balance regulatory rigor with market openness as competition among global financial centers intensifies.

Coinbase Chief Executive Officer Brian Armstrong is set to meet with senior banking executives this week to discuss the future of US crypto market structure legislation, according to statements shared during the World Economic Forum in Davos. The discussions come after Coinbase withdrew its support for the Digital Asset Market Clarity Act, known as the CLARITY Act, citing concerns over a revised Senate draft. With legislative momentum stalled in Washington, Davos has emerged as an alternative forum for behind-the-scenes negotiations.

Armstrong said he is using the global gathering to engage not only with bankers but also with political leaders on how digital assets could modernize financial systems. He framed stablecoins and tokenization as tools that could improve efficiency and access, provided crypto firms and traditional institutions operate under comparable regulatory standards. The meetings signal an attempt to rebuild consensus after the bill’s Senate markup was postponed indefinitely.

Why Coinbase Withdrew Support

Coinbase pulled its backing of the CLARITY Act last week after reviewing a 182-page Senate Banking Committee draft shortly before a scheduled markup vote. Armstrong described the revised text as worse than the existing regulatory environment, arguing it would constrain core crypto activities rather than provide clarity. His objections focused on provisions that could limit stablecoin-related features and expand government access to user financial data.

A central point of friction involves stablecoin yields, which some banking groups argue could draw deposits away from traditional lenders. Armstrong countered that restricting these features would tilt the competitive landscape in favor of legacy banks and undermine innovation. He also raised concerns about shifting oversight authority from the Commodity Futures Trading Commission to the Securities and Exchange Commission, a change he said could increase regulatory uncertainty for digital asset markets. Coinbase’s withdrawal of support was widely viewed as a key factor behind the Senate’s decision to delay further consideration of the bill.

Broader Policy and Market Context

The talks in Davos reflect the growing institutional stakes surrounding US crypto policy as digital assets become more embedded in global finance. Stablecoins, in particular, have drawn heightened attention from policymakers due to their potential role in payments and settlement systems. For banks, the debate centers on managing systemic risk and deposit stability, while crypto firms emphasize competition and technological progress.

Armstrong said his objective is to find a compromise that allows both sectors to benefit, positioning stablecoins as complementary rather than disruptive to traditional banking. He also indicated that discussions with international leaders would focus on tokenization as a means of broadening access to capital markets, a theme gaining traction among asset managers and regulators alike.

While it remains unclear whether the Davos discussions will translate into changes to the Senate draft, the shift in venue underscores the political sensitivity of crypto regulation in the US. With legislative timelines uncertain, industry leaders are increasingly looking beyond Capitol Hill to shape the next phase of digital asset policy.