Julius Baer, a Swiss asset manager is set to offer cryptocurrency and decentralized finance (DeFi) exposure to its high-net-worth clients.
Julius Baer, a 132-year-old Swiss asset management firm, plans to give its high-net-worth clients access to cryptocurrencies and decentralized finance (DeFi).
During his presentation of the company’s three-year strategy update, CEO Philipp Rickenbacher acknowledged the entry into the cryptocurrency industry.
The recent downturn in cryptocurrency markets, according to Rickenbacher, offers a watershed moment for its clients to get exposure to the emerging asset class.
“It could well be at this very instant that we are witnessing a bubble-burst moment of the crypto-industry and we all know what happened after the dot-com bubble burst 30 years ago. It paved the way for the emergence of a new sector that indeed transformed our lives.”
Rickenbacher drew parallels between the two industries, claiming that cryptocurrencies and DeFi had the same potential as the Dot Com bubble, which gave birth to the internet and other essential services we know and use today.
“They will transform the financial sector over the next ten years and it is important for us to gain a strong foothold in this area. That’s why it’s exactly the right moment to invest in the long-term potential of digital asset technology.”
The CEO emphasized the efforts of several central banks to develop Central Bank Digital Currencies, as well as the growing popularity of cryptocurrency exchanges, which is speeding up-regulation and leveling the playing field with traditional banking.
Rickenbacher was particularly enthusiastic about the DeFi sector, which has been in the news recently because of the catastrophic collapse of the Terra ecosystem.
The CEO of Julius Baer argues that unbridled innovation has collided with regulatory reality. While others doubt DeFi’s potential, Rickenbacher believes it will have a significant impact on the future of finance:
“On the other hand, it’s also where traditional, cost-heavy and complex parts of the old banking system are today just rewritten with a few lines of code. As technology and traditional finance ultimately will converge, there is huge potential to really transform our value chains.”
The firm will begin to provide its clients with bitcoin guidance and research, as well as access to the space through the integration of cryptocurrencies into its wealth management solutions.
Julius Baer also plans to collaborate with cryptocurrency service providers and entrepreneurs at the crossroads of fiat and cryptocurrency, while maintaining regulatory compliance for its clients.