The major Swiss bank UBS Group AG took over its ailing competitor Credit Suisse on March 19 for around 3.2 billion US dollars. It is one of the most significant bank mergers since the financial crisis 15 years ago. Because: The takeover will create one of the largest banking service providers in the world. The assets under management are one communication according to more than 5 trillion US dollars. Ralph Hamers, CEO at UBS explains:
The combination of UBS and Credit Suisse will build on UBS’s strengths and further enhance our ability to serve our clients globally and deepen our world-class capabilities.
Shortly after the acquisition, BTC climbed above $28,000. The announcement caused short-term euphoria on the crypto market. In the long term, however, it remains to be seen how a potential UBS Bank crypto strategy will affect Bitcoin and Co.
Both Swiss financial institutions are now well-known in the crypto sector. While UBS Bank has already issued its first bonds on the blockchain, Credit Suisse recently invested in the Taurus custody platform.
Justin Sun wanted to buy Credit Suisse
Prior to the acquisition, Tron founder Justin Sun expressed his interest in Credit Suisse in a series of tweets: Sun would have paid around 1.5 billion US dollars.
With the acquisition of Credit Suisse, he wanted to pave the way for a more innovative and decentralized financial system. “As we move into a more digitized and decentralized future, it is critical that traditional financial institutions adapt and evolve to meet the needs of their customers,” said the 32-year-old.
Credit Suisse: victims of the banking crisis
Credit Suisse stock has plummeted nearly 75 percent in the last month. After another double-digit sell-off of the security, trading was finally stopped.
The collapses of Silicon Valley Bank and Signature Bank in the US created uncertainty in the financial sector and at Credit Suisse. Added to this was a financial year whose red figures speak for themselves: the bank recorded a loss of around 8 billion US dollars.
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