UBS CEO: Blockchain Is 'Almost a Must' for Business

The CEO of UBS Group AG endorsed blockchain technology in an interview, suggesting that it is "almost a must" for business.

Jun 19, 2018 at 2:00 a.m. UTC
Updated Sep 13, 2021 at 8:04 a.m. UTC

The CEO of Swiss financial services giant UBS Group AG endorsed blockchain technology in an interview, suggesting that it is "almost a must" for business.

Sergio Ermotti told CNBC Monday that the technology can help companies become more efficient, thereby reducing costs for certain operations. In general, technology will help firms free up resources, but blockchain in particular "is a great way" to increase those efficiencies.

He said:

"Our industry will continue to be under pressure, in terms of gross margins. It's no doubt. The only way you can stay relevant is not only by being strong in terms of capital, in terms of products, the quality of the people you have, advice you give to clients. You need also to be able to price it correctly."

During the interview, Ermotti said that the blockchain technology "will be as crucial and disruptive, and changing as regulation was in the last 10 years."

This is not the first time Ermotti has praised blockchain technology without similarly praising cryptocurrencies. During another interview with CNBC in October, he said he was far more bullish on blockchain than he was about cryptocurrencies specifically.

His comments echoed those of UBS chief investment officer Mark Haefele, who referred to bitcoin as being risky last year, as previously reported by CoinDesk.

Putting action to words, UBS is currently backing a blockchain-based trade finance platform, Batavia, in partnership with IBM. CoinDesk reported in April that the platform has conducted its first live cross-border transactions with corporate clients.

UBS image via Shutterstock.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Bitcoin Sees Weakness at $29K as Traders Assess Fed Minutes

The largest cryptocurrency dropped below a support level in the past 24 hours before recovering.

The largest cryptocurrency dropped below a support level in the past 24 hours before recovering.

CoinDesk - Unknown
2
CoinDesk - Unknown
Binance's Bahrain License Upgraded for More Crypto Services

Binance Bahrain was granted a preliminary license in December and full license in March.

Binance Bahrain was granted a preliminary license in December and full license in March.

CoinDesk - Unknown
3
CoinDesk - Unknown
Gaming DAO Merit Circle and YGG Caught in DAO Governance Strife

Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there’s not been enough value-add by the gaming guild giant.

Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there’s not been enough value-add by the gaming guild giant.

CoinDesk - Unknown
4
CoinDesk - Unknown
Former Binance Execs Create $100M Fund to Spur Crypto Adoption in Emerging Markets: Report

Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively.

Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively.

CoinDesk - Unknown