Swiss Asset Manager Promises to Launch DeFi Services within 3 Years

Julius Baer Group – the Swiss private bank with over $110 billion in AUM as of 2021 –  revealed that it will offer digital asset services to high-ended clients. To test trading, token booking, and compliance, a pilot program is currently in place. This group will incorporate cryptocurrencies into its wealth management services, first offering targeted clients relevant advice and research.

Digital Assets as a Core to the Prospective Strategy

In a presentation explaining its future strategy to investors, the bank’s CEO Philipp Rickenbacher compared the current turmoil of the crypto market to the dot-com bubble burst in the early 2000s. The CEO explained that the future of cryptocurrency innovation would follow a similar path to the rise in commercial Internet use following the burst.

“It paved the way for the emergence of a new sector that indeed transformed our lives; I believe digital assets and decentralized finance hold that same potential,”

Rickenbacher stressed that the company would keep an eye on digital assets’ rise and explore the opportunities it could offer in its strategy plan for the period 2023-2025. As the company aimed to position itself as the intersection of “digital assets and the fiat world,” the CEO confirmed that it would dive into the DeFi space as well:

“Integrating digital assets into its holistic wealth management proposition will position Julius Baer firmly at the interface of digital assets and the fiat world. The Group is well-prepared to successfully navigate both its clients and its business through the disruptions decentralised finance will inevitably pose.”

Rickenbacher expressed a bullish outlook of DeFi, as he stated that the sector could potentially disrupt the “traditional cost-heavy and complex parts of the old banking system.”

Julius Baer had already called SEBA Crypto AG in Switzerland to offer its clients access to digital assets services back in 2019. As indicated in the announcement, Baer stated that it believed bitcoin and other cryptocurrencies would become a legitimate asset class for investors’ portfolios.

Baer announced at the time that this partnership would allow it to expand its services in offering storage, transaction and investment solutions for digital assets.

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