The UAE is one of the fastest-growing markets for crypto services. The Zurich-based private bank wants to get in on the game by applying for an additional digital assets license in Dubai.
Julius Baer is planning on expanding its crypto-asset management services into Dubai. Its Middle East subsidiary, JBME, will soon be applying to the Dubai Financial Services Authority (DFSA) for a digital assets license variant in addition to its existing licenses, «Bloomberg» (behind paywall) first reported.
Long-Term Trend
It would mark the company's first major foray into digital assets beyond Switzerland's borders. The new license would allow the institution to offer custody services for digital assets such as Bitcoin and Ether in the United Arab Emirates (UAE), one of the fastest-growing markets for crypto services.
The bank told the online platform «Cryptonews» it sees digital assets as a «long-term trend with strategic significance for wealth management,» but recent scandals underscore the need for responsible participants in this space. «Despite a depressed market sentiment at the moment, we see a clear need for a trusted intermediary in both the short and the longer term.»
Key Market
The DFSA offers a clear licensing regime providing «essential clarity for us as a regulated player,» according to the bank which said it received requests from clients to extend its services to Dubai.
The private bank considers the UAE a «key geography» Jonathan Hayes, head of digital asset development, told Bloomberg.
Lombard Loans for Crypto Clients
In Switzerland, where the bulk of its crypto activities is based, Julius Baer recently began offering Lombard loans to selected crypto clients, allowing clients to borrow against digital assets held in custody at the bank.
One of the first private banks to offer such a service for cryptocurrencies, the tailored offering is limited for now to clients with diversified portfolios that include traditional assets, he said.
