UBS Doubles Debt Tender Cap, Expands Digital-Money Push

UBS Group AG TEMP (SIX: UBSG) has expanded its balance-sheet flexibility by doubling its debt tender cap to €4 billion. This move comes as part of the bank's efforts to consolidate China distribution and boost digital-money capabilities.

The debt tender cap increase will allow UBS to repurchase up to €4 billion in debt, potentially reducing its overall debt burden. The move is seen as a positive step for the bank, which has been working to strengthen its balance sheet in recent months.

UBS has also announced that it will end fund sales via its Shenzhen China distribution unit by the end of September. However, other China wealth platforms will remain active, and the bank plans to consolidate its resources in the region.

In related news, UBS has hired three advisory teams from Morgan Stanley and Merrill Lynch, bringing around $2.6 billion in client assets on board. This move is expected to expand UBS's wealth management presence in CO, MD, and WA.

Additionally, UBS has joined live testing of the CHFD Swiss franc stablecoin, a digital currency pegged 1:1 to the Swiss franc. The bank will be working alongside other banks and payments firms to inform Switzerland's development of digital money.