updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Wall Street banking giant UBS forecasts further Fed rate cuts later this year. This comes as Fed Governor Stephen Miran claims the US-Iran war and tariffs will not have long-term impacts on inflation, but expects three rate cuts instead of four in 2026. Bitcoin and gold will rise further if the Federal Reserve proceeds with
The post UBS Expects 50 bps Fed Rate Cuts as Gov Miran Downplays Inflation Risks appeared first on CoinGape.
]]>UBS, which is the world’s largest wealth manager, reportedly plans to roll out crypto trading for some of its banking clients. This move comes as more Wall Street giants, including JPMorgan and Morgan Stanley, venture into crypto. UBS Plans Bitcoin And Ethereum Trading For Some Wealth Clients According to a Bloomberg report, the Swiss banking
The post $5T UBS To Offer Bitcoin and Crypto Trading as More Banks Expand Into Crypto appeared first on CoinGape.
]]>Swiss banking giant UBS has taken a major step toward institutional blockchain by completing its first live tokenized fund transaction on the Ethereum network, a landmark demonstration of blockchain’s real-world utility. By bringing fund operations into blockchain rails, UBS demonstrates how tokenization can eliminate settlement friction, improve transparency, and expand access to digital asset markets.
In the echelons of global finance and true innovation, UBS, the legendary Swiss banking giant, has announced the completion of the first live tokenized fund transaction on the Ethereum blockchain. According to CryptoGucci’s post on X, UBS has achieved the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA). This agreement marks a milestone in blockchain infrastructure for the $100 trillion fund industry.
The transaction involved the tokenized UBS USD Money Market Investment Fund Token (uMINT) on the ETH blockchain. This achievement is engineered to drive unprecedented operational efficiencies and unlock new possibilities for product composability within the traditionally rigid fund industry. Meanwhile, UBS’s proprietary tokenization platform is leading this charge, a platform designed to automate key functions.
As articulated by Mike Dargan, UBS Chief Operating Officer and Technology Officer, this transaction represents a key milestone in how smart contract-based technologies and advanced technical standards are poised to enhance fund operations and the investor experience.
Ethereum is entering a new era of a super-cycle, where the current price of ETH does not reflect the monumental improvements in its fundamental infrastructure over the past several months. A full-time stock investor and trader, known as StockTrader_Max, has noted that the current situation won’t last much longer, due to the 8-year historical chart of ETH. It also shows that the ETH uptrend over the past 5 years has been in a consolidation phase that’s likely nearing its end.
However, this breakout won’t emerge before the end of 2025. Those traders and investors who are patient will benefit exponentially from the super-cycle that is inevitably approaching. This breakout will occur as Wall Street and the broader financial industry adopt the blockchain space and start building on ETH.
Co-founder of weRate_Official, Host of CoinCompassHQ, and bestselling author at Forbes 30U30, Quinten Francois, has revealed that the repo market had just broken. The Federal Reserve just executed an overnight repo operation, injecting a staggering $29.4 billion into the banking system, which is the biggest since the chaos of 2020.
In 2019, this exact scenario triggered an emergency liquidity injection of $255 billion, followed by $6 trillion in Quantitative Easing (QE) after the COVID pandemic conveniently appeared. “Ignore the noise, because this is how every major liquidity cycle begins,” Francois mentioned.
]]>Investors interested in Bitcoin ETFs in the US have been transferring their 401k retirement plans to institutions offering seamless trading in a bid to obtain financial freedom.
The approval of 11 spot Bitcoin exchange-traded funds (ETFs) has received mixed reactions in the past two days. On one hand, the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) can be seen as a major event that opens a new era of mass adoption of Bitcoin and the web3 sector. On the other hand, the approval of spot BTC ETFs has been viewed as a violation of the law by undermining the set anti-money laundering laws. Furthermore, US SEC Chair Gary Gensler indicated that the approval of spot BTC ETFs is not an endorsement of the crypto assets.
“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” Gensler noted.
Notably, US Senator for Massachusetts Elizabeth Warren differed with the SEC’s decision to approve spot Bitcoin ETF amid concerns over anti-money laundering. Nonetheless, the crypto community has reminded Senator Warren that the US justice system paved the way for the approval of spot BTC ETFs.
The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision.
If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules.
— Elizabeth Warren (@SenWarren) January 11, 2024
Following the approval of spot Bitcoin ETFs in the United States on Wednesday, Vanguard Group indicated that it will not facilitate their buying but only sales. As a result, investors seeking to get Bitcoin exposure to their portfolios have opted to transfer to friendly financial institutions like Fidelity Investments which supports seamless trading of spot Bitcoin ETFs.
Just transferred my 401k from Vanguard to Fidelity. It took about 15 minutes.
If you have an account with a broker currently blocking access to #bitcoin ETFs, close it and get out.
Make these boomers hurt
— Julian Fahrer (@Julian__Fahrer) January 11, 2024
Meanwhile, UBS Group AG (NYSE: UBS), a Zürich-based wealth management firm, has announced that it will allow access to some clients who want to trade spot Bitcoin ETFs. However, people close to the bank indicated that UBS will approve access under several conditions. One of the conditions set is that UBS cannot solicit the trades and accounts with a lower risk tolerance will not be able to buy the spot Bitcoin ETFs.
Similarly, New York-based Citigroup Inc (NYSE: C) intends to offer seamless trading services to the approved spot Bitcoin ETFs to its individual clients. Another financial firm that has already confirmed the support of spot Bitcoin ETFs trading is Charles Schwab Corp (NYSE: SCHW).
The approval of spot Bitcoin ETFs in the United States has significantly increased the crypto bullish sentiments. With Bitcoin halving less than 100 days away, crypto experts expect Bitcoin price to reach a six-figure value within the next few quarters. Moreover, the demand is rising exponentially on a limited supply of Bitcoin and other digital assets.
The UBS report for Q3 2023 showed that the company’s net loss increased because of expenses necessary due to the Credit Suisse integration.
Multinational investment bank and financial services company UBS Group AG (SWX: UBSG.SW) has published its report for Q3 2023, showing a disappointing net loss. The banking giant announced $785 million in net loss for the quarter, disappointing the market. Analysts Reuters polled had put the net loss for the quarter at $444 million.
Most of the loss was because of expenses UBS acquired following the recent acquisition of Swiss-based global investment giant Credit Suisse AG. UBS expenses related to the deal hit $2 billion. Nonetheless, UBS CEO Sergio Ermotti spoke about the deal with optimism. In a statement, Ermotti said:
“We are executing on the integration of Credit Suisse at pace and have delivered underlying profitability for the Group in the first full quarter since the acquisition. Our clients have continued to place their trust and confidence in us, contributing to strong inflows across wealth management and our Swiss franchise.”
UBS total group revenues for Q3 2023 climbed 23%, from $9.54 billion in Q2 to $11.7 billion. Also, the bank’s CET1 capital ratio, which indicates liquidity, remained at 14.4% from Q2. Interestingly, Credit Suisse Wealth Management brought net new money inflows ($22 billion) for the first time since Q1 2022.
UBS also had $844 million underlying profit before tax, which Citi analysts noted was higher than the company’s previous guidance, and 6% more than Citi’s forecast. Despite the net loss coming in higher than expected, Citi said the UBS Q3 2023 report was “overall a good set of results”. It also confirmed the Buy/High Risk rating for UBS.
As UBS continues to integrate Credit Suisse’s banking unit, a few changes are expected. For instance, there is a high chance that UBS will retrench, significantly cutting a large percentage of the bank’s employee count.
Nonetheless, UBS said Credit Suisse clients and Personal and Corporate Banking (P&C) divisions contributed $22 billion to its total new deposits of $33 billion across its P&C and Global Wealth Management divisions.
The $3.2 billion deal involved an agreement with the Swiss government to help the acquisition. The government agreed to cover potential losses of 9 billion francs ($9.9 billion) possibly incurred from winding down Credit Suisse. However, the guarantee will only be possible if the losses from liquidation cross 5 billion swiss francs.
The deal also grants Credit Suisse’s shareholders one UBS share for every 22.8 outstanding shares held. This agreement between both giants was necessary because, as it was an emergency acquisition, Credit Suisse shareholders could not vote.
In August, UBS posted a record Q2 2023 profit, interestingly driven by its Credit Suisse acquisition. While analysts expected a net profit of $12.8 billion for Q2, the bank scaled the forecast by more than 120%, reporting an impressive $28.88 billion for the period. Much of this was from $28.93 billion in negative goodwill from the Credit Suisse acquisition. Apparently, UBS had overpaid for several assets, much higher than actual value. Negative goodwill is excess left after the fair value of the purchase price.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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The first transactions within the pilot included fund subscriptions and redemption of the tokenized fund represented as a smart contract. Notably, UBS used its own UBS Tokenize platform to conduct the transactions.
Swiss multinational investment bank and financial services company UBS Asset Management (SWX: UBSG) has launched the first pilot of a tokenized Variable Capital Company (VCC) fund – a new legal entity form for all types of investment funds in Singapore. The fund is a part of the Project Guardian initiative run by the Monetary Authority of Singapore (MAS).
The Project Guardian aims to drive faster settlement, greater operational efficiency, and more effective cross-border distribution for capital market instruments on digital asset networks. The pilot launched by UBS seeks to enhance fund distribution and facilitate improved secondary market trading of VCC fund shares, thereby reaping industry-wide operational efficiencies.
Thomas Kaegi, Head of UBS Asset Management, Singapore & Southeast Asia, commented:
“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products. Through this exploratory initiative, we will work with traditional financial institutions and fintech providers to help understand how to improve market liquidity and market access for clients.”
The first transactions within the pilot included fund subscriptions and redemption of the tokenized fund represented as a smart contract. Notably, UBS used its own UBS Tokenize platform to conduct the transactions.
Further, UBS is planning to expand its partnership network for the project as well as explore other investment strategies in future live pilots.
Back in May 2022, the Monetary Authority of Singapore (MAS) announced Project Guardian – an initiative to facilitate “best practices and technical standards” in the financial ecosystem and test the feasibility of applications in asset tokenization and DeFi while managing risks to financial stability and integrity. In June this year, the Japan Financial Services Authority (FSA) joined the project.
Among the objectives of the project are industry pilots with traditional financial institutions and FinTechs to understand opportunities and risk areas, safe development of the ecosystem using industry experiments and research as a reference, and establishing a proper governance model for the industry.
By now, a number of pilots have been launched. UBS VCC fund is one of them. Earlier, a technical pilot on the issuance and distribution of a digitally native structured product was completed by HSBC, Marketnode, and UOB. As we have reported, this pilot proved that the structured product chain could offer faster issuance and settlements at lower costs.
Another pilot has been completed by DBS Bank, JPMorgan, and SBI Digital Asset Holdings. The organizations mentioned conducted foreign exchange and government bond transactions against liquidity pools comprising tokenized Singapore Government Securities Bonds, Japanese Government Bonds, Japanese Yen (JPY), and Singapore Dollar (SGD). A live cross-currency transaction[3] involving tokenized JPY and SGD deposits was successfully conducted.
One of the pilots being carried out nowadays within Project Guardian is a repurchasing agreement (repo) with natively issued digital bonds. DBS Bank, SBI Digital Asset Holdings, and UBS AG are in charge of the test. This part of the project is about greater flexibility, operational efficiency, faster settlement, and increased efficiency for cross-border distribution and settlement of capital market instruments on digital asset networks.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
Additionally, UBS has announced its decision to fully integrate Credit Suisse’s domestic banking unit into its operations.
UBS Group AG (SWX: UBSG), Switzerland’s preeminent banking institution, has reported record-breaking Q2 2023 profits that not only exceeded analysts’ estimates but also highlighted the bank’s strategic prowess in its recent acquisition of Credit Suisse Group AG (SWX: CSGN).
Analysts had initially projected a net profit of $12.8 billion for the Q2 of the fiscal year, a figure that UBS has decisively exceeded. According to a Reuters report, the banking giant reported a staggering $28.88 billion in profits for the three months that ended in June.
The key driver behind this remarkable feat is the recognition of $28.93 billion in negative goodwill related to the Credit Suisse acquisition. Negative goodwill represents the excess of fair value of acquired assets over the purchase price.
In this case, UBS’s acquisition of Credit Suisse seems to have brought in assets that were valued significantly higher than the price paid. This financial boost stems from UBS’s ability to acquire Credit Suisse at a discounted price of 3 billion Swiss francs ($3.4 billion), enabling the bank to unlock substantial hidden value.
While the negative goodwill resulting from the acquisition has played a significant part in UBS’s reported earnings, the bank’s emphasis on operational efficiency and strong financial standards should not be underestimated.
Underlying earnings before tax, which includes negative goodwill, integration-related expenses, and acquisition costs, remains impressive at $1.1 billion. This figure illustrates that, even in the absence of a significant windfall from negative goodwill, UBS’ operational performance remains stable and resilient.
Return on Tangible Equity (ROTE) is another pivotal measure that provides insight into a bank’s profitability. Excluding negative goodwill, integration-related expenses, and acquisition costs, UBS’s ROTE stood at 4.3%.
Additionally, UBS has announced its decision to fully integrate Credit Suisse’s domestic banking unit into its operations. The merger of legal entities is expected to conclude by 2024, marking a significant step in the aftermath of UBS’s acquisition of Credit Suisse. This strategic move is not without its obstacles and debates, but it demonstrates UBS’s dedication to improving its operations and attaining long-term growth.
Credit Suisse’s flagship Swiss bank, a crucial profit center for the group and the only division that generated positive earnings in 2022 was at the forefront of discussions during the acquisition.
Analysts had speculated on various outcomes, including the possibility of UBS spinning off and floating the division in an IPO. However, UBS’s CEO, Sergio Ermotti, has affirmed that integration is the best course of action for UBS, its stakeholders, and the Swiss economy.
In addition to the integration news, UBS has also set its sights on substantial cost savings. The bank has announced a target of at least $10 billion in gross cost savings by 2026, following the completion of the integration of all Credit Suisse Group businesses.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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As part of a government-backed rescue plan earlier this year as well as a bid to prevent any financial market instability, UBS acquired Credit Suisse in a $3.2 billion deal.
The long-awaited conclusion of the Credit Suisse Group AG (SWX: CSGN) acquisition by investment banking giant UBS Group AG (SWX: UBSG) may happen “as early as June 12”.
This will signify the birth of a massive Swiss bank with a balance sheet of $1.6 trillion. All that is left for the deal to be completed is its registration statement and according to UBS, this covers shares to be delivered, being declared effective by the United States Securities and Exchange Commission (SEC), and other remaining closing conditions.
Once the take-over process is done, each Credit Suisse stakeholder will be eligible to receive one UBS share for every 22.48 shares they previously held. Also, a restructuring process will see that Credit Suisse shares and American Depositary Shares (ADS) are removed from the SIX Swiss Exchange and the New York Stock Exchange.
Zuercher Kantonalbank analyst Michael Klien said, “We consider the completion of the takeover to be an important step in initiating what we see as a protracted integration process and getting things done. Although the risk profile of UBS has changed significantly, we see good opportunities for investors.”
Together as a single unit, the new bank will have $5 trillion of invested assets.
The Swiss largest banking firm has been on the acquisition of Credit Suisse for a few months now. As part of a government-backed rescue plan earlier this year as well as a bid to prevent any financial market instability, UBS acquired Credit Suisse in a $3.2 billion deal. At that time, the cost of the acquisition was a 60% discount from the bank’s $8 billion market capitalization.
The deal attracted the attention of the Swiss National Bank, the Swiss Federal Department of Finance, and the Swiss Financial Market Supervisory Authority (FINMA). Specifically, the Swiss National Bank pledged debt support to facilitate the acquisition. Shortly after, the shares of both entities plunged significantly but this did not deter UBS as it went further to appoint Sergio Ermotti, UBS Group’s former Chief Executive Officer (CEO) as the new CEO to supervise the takeover.
Also, Ulrich Koerner, the CEO of Credit Suisse was granted a seat on the board of directors of the new venture. The plan was to keep Koerner in charge of maintaining Credit Suisse’s operational continuity and client focus while also assisting the integration process.
The deal was, however, about to take another turn last month when concerns were raised about the volume of losses which UBS could incur upon finalizing the acquisition. As reported by Coinspeaker, UBS was likely to incur a financial loss of around $17 billion from the takeover. Precisely, $13 billion represents liability in fair value adjustments for the rebranded mega financial firm while the other $4 billion was from legal and regulatory costs.
Bearing this in mind, UBS decided to undergo a phased integration which could likely go on for the next couple of years.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.