Dubai, UAE – October 28, 2025 — As crypto gains fresh traction globally, the ultra-wealthy in the United Arab Emirates are driving one of the sector’s most compelling storylines: a major shift in how private bankers and wealth managers address digital assets. A recent study by Swiss software firm Avaloq reveals that demand for crypto among high-net-worth individuals in the UAE is soaring — and many traditional advisors are scrambling to keep pace.
Demand Outpaces Supply
Avaloq’s survey, conducted earlier this year among nearly 4,000 investors and over 450 wealth-management professionals, found that 39% of wealthy UAE clients already hold cryptocurrencies. Yet only 20% do so through traditional wealth managers, underscoring a widening gap between client demand and advisor readiness.
In fact, 63% of UAE investors said they have switched or are considering switching their wealth managers because their current advisors aren’t adequately addressing crypto. “As crypto has evolved as an asset class, there has been a growing need among private-banking relationship managers to cater to clients who are basically not being served,” said Akash Anand, Head of Middle East & Africa at Avaloq.
What’s Holding Banks Back
Many private banks remain hesitant to fully integrate crypto services due to several persistent challenges:
- Volatility and complexity: Wealth managers cite market instability and the technical challenges of managing custody and wallets.
- Regulatory uncertainty: Building secure, compliant infrastructure for digital assets requires major investment in oversight and risk management.
- Client skepticism: Among UAE investors who don’t own crypto, the top concerns include market volatility (38%), lack of understanding (36%), and distrust in exchanges (32%).
Despite these barriers, experts say momentum is shifting quickly as clients increasingly demand secure, regulated access to digital assets.
UAE: A Crypto Hotspot
The UAE’s unique mix of high wealth concentration, progressive regulation, and digital adoption has made it a global center for crypto innovation. The country is home to numerous ultra-high-net-worth family offices and a growing expat investor base. Dubai’s Virtual Assets Regulatory Authority (VARA) and the Emirates’ forward-looking approach have attracted global exchanges and blockchain firms alike.
Globally, crypto wealth is also on the rise. The 2025 Crypto Wealth Report by Henley & Partners estimates that the number of “crypto millionaires” worldwide has climbed by 40% year-on-year to more than 240,000.
To keep up, private banks are beginning to form partnerships with specialized crypto-custody providers and fintechs. Avaloq, for instance, has been integrating digital-asset custody platforms into traditional banking systems to help institutions serve clients who want seamless exposure to both fiat and crypto.
The Road Ahead: Integration and Trust
For wealth managers, capturing this new demand means adapting quickly in three key areas:
- Integrated platforms: Clients increasingly expect to manage traditional and digital assets in one place, with unified reporting and analytics.
- Secure custody: Institutions must ensure regulated, transparent frameworks for holding and transferring crypto assets.
- Client education: Advisors need to deepen their understanding of blockchain, risk management, and tokenized finance to guide clients effectively.
A Glimpse of the Industry’s Future
What’s unfolding in the UAE may be an early glimpse of how global wealth management will evolve. As private banks begin treating crypto as a core offering rather than an experiment, the industry is moving closer to true digital-asset integration.
Those that adapt could emerge as trusted stewards of next-generation wealth. Those that hesitate risk losing clients to more agile competitors.
In the UAE, where regulation, innovation, and wealth converge, the race to serve the crypto-rich is already underway — and it’s accelerating fast.
