UBS Ends BlackRock Aladdin Contract, Shifts to Internal Systems for $50M–$100M Yearly Savings Post Merger

UBS Group AG has terminated its long-standing contract with BlackRock’s Aladdin technology platform, a decision inherited from its 2021 merger with Credit Suisse. The move, effective July 2025, marks a strategic shift toward internal systems and is projected to generate annual cost savings of $50–100 million. UBS will migrate “hundreds of Credit Suisse funds” into its own infrastructure, eliminating reliance on third-party asset management tools. The transition aligns with broader cost-cutting initiatives and operational streamlining efforts under UBS’s post-merger integration strategy[1].

The decision was spearheaded by UBS CEO Sergio Ermotti and BlackRock CEO Larry Fink, though neither party has publicly commented on the termination. Analysts suggest the move reflects UBS’s push for greater control over its technological ecosystem, potentially enabling future investments in in-house capabilities. The integration process, described as a “large-scale operational task,” will involve restructuring legacy Credit Suisse assets to align with UBS’s existing systems[1].

Market observers note the change has no immediate impact on cryptocurrency or decentralized finance (DeFi) markets. While UBS’s asset management realignment primarily affects traditional finance operations, no outflows or inflows tied to crypto assets have been observed. Historical data indicates similar institutional shifts typically leave public blockchain networks and DeFi platforms unaffected. Regulators such as the SEC, CFTC, and ESMA have not yet issued statements, though analysts expect further scrutiny as the transition progresses[1].

The contract termination underscores a broader trend among financial institutions to reduce dependency on external platforms. By consolidating operations internally, UBS aims to enhance efficiency and mitigate risks associated with third-party vulnerabilities. However, the long-term implications for asset management workflows and client services remain under evaluation. Experts speculate the move could set a precedent for other institutions reassessing their technology partnerships amid evolving market dynamics[1].

Source: [1] [UBS Ends Aladdin Contract, Moves Credit Suisse Assets] [https://coinmarketcap.com/community/articles/6882299a14d6d754a5b67a87/]