UBS chief executive Sergio Ermotti said blockchain will inevitably converge with traditional banking while speaking at the World Economic Forum in Davos.
“Blockchain is the future for traditional banking,”
Ermotti said.
He added that the separation between blockchain-based systems and conventional finance will continue to narrow.
Ermotti’s comments reflect an evolution from his 2018 view that blockchain was a competitive necessity rather than a structural foundation.
UBS, which manages more than $5 trillion in assets, is the world’s largest wealth manager.
The remarks echo comments from Fidelity chief executive Abigail Johnson, who has criticised legacy financial infrastructure.
Johnson described traditional financial systems as overly complex and built on outdated technology.
Industry leaders increasingly argue that blockchain could replace reconciliation-heavy processes in global finance.
Regulatory developments in the United States are also contributing to pressure for closer integration between blockchain and banking.
Despite its blockchain support, UBS previously warned retail investors about the risks of cryptocurrencies such as Bitcoin.
At the time of reporting, Bitcoin price was $89,945.97.