UBS Group AG CEO Sergio Ermotti endorsed blockchain technology on Wednesday, stating that it will be the future of traditional banking. He argued that the technology will give customers confidence to place their assets with financial institutions.
The UBS boss told CNBC that the technology can help companies become more efficient. He believes it will reduce costs for certain activities and help companies free up resources.
Financial institutions are striving to integrate digital assets
The CEO of UBS Bank says that “…blockchain is the future of traditional banking.”pic.twitter.com/WJJWeXceiR
— Dan Gambardello (@dangambardello) January 20, 2026
Ermotti earlier declared that without blockchain technology, the financial sector will continue to face pressure on gross margins. He urged financial institutions to remain relevant by maintaining strong capital, products, quality of staff and customer advice.
Ermotti also believes that blockchain technology will be as important and disruptive as the regulations were a decade ago. He argued that blockchain technology still has to prove itself over the years. He also acknowledged that technology has to do that prove its reliability in quantum computers.
“I really believe that Blockchain and that kind of technology is the future for traditional banking, and you will see a convergence of that.”
–Sergio ErmottiCEO of UBS.
The UBS CEO has previously been in favor of blockchain technology, stating that he was more optimistic about it than digital assets. He said Tuesday that the next phase of global banking will essentially focus on Bitcoin and other digital assets.
Ermotti is convinced that major financial institutions have moved from debating the relevance of crypto to the traditional banking sector. He revealed that institutions are currently trying to figure out how to integrate Bitcoin securely and at scale, while banks are expanding custody and products tied to cryptocurrencies.
Ermotti urges financial institutions to diversify investment assets
The UBS boss also revealed during a panel at the World Economic Forum in Davos that diversification is now more important for investors in the sector. He believes the initiative is crucial because there are no safe assets.
Ermotti stated that asset prices are inevitably linked to geopolitical issues. He too recognized that it would be difficult for investors to diversify outside the US due to the country’s economic strength. His comments come after European pension fund AkademikerPension pledged to cancel its US government debt.
The UBS boss also stated that the current volatility hitting the financial markets is far from over. He argued that recent trade disputes and geopolitical tensions make it difficult for markets to remain unaffected.
Ermotti also noted that investors’ risk tolerance is returning to more typical levels, driven by increased US monetary policy against countries that oppose President Trump’s plan to acquire Greenland. He believes the constant flow of uncertainty is starting to undermine customer confidence, which he believes could ultimately become overwhelming for investors.
The UBS boss stated that investors are becoming more cautious amid current global tensions. He believes investors should hold on to cash and diversify their investments to minimize risk. Ermotti also warned that it is currently difficult to find attractively valued assets in any category.
Trump’s comments about Greenland on Tuesday sent major stock indexes tumbling, while gold and silver rose to new record highs. The president announced that he will discuss the Greenland issue with leading world leaders this week.
Ermotti does not believe normality will return anytime soon. He believes investor confidence will return once progress is made in resolving trade disputes and other issues involving Greenland and Ukraine.
The UBS CEO is also confident in the long-term benefits of artificial intelligence technology. However, Harvard professor Gita Gopinath argued that there is a difference between the valuation of AI and the technology itself. Gopinath compared the technology to the dot-com era, noting that the scale of exposure to the global economy is greater than it was then.