Barclays explores blockchain payments, tokenized deposits

Barclays Plc is exploring a blockchain platform for payments and tokenized deposits and has sent a request for information to some potential technology suppliers, unnamed people familiar with the private deliberations said.

The bank could include payments apps like stablecoins and tokenized deposit services.

Stablecoins are gaining ground in payments and could challenge banks as tech firms and fintechs enter the space.

Bloomberg Intelligence estimates such tokens could account for more than US$50 trillion in payments annually by 2030.

🔗 Source: Bloomberg

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Barclays’ exploration builds on an investment

Barclays has already put money into Ubyx Inc., a U.S.-based clearing system for digital money that covers tokenised deposits and regulated stablecoins 1.
The investment supports infrastructure for services such as tokenised deposits and stablecoins, rather than a one-off information-gathering exercise.
Ubyx plans a shared settlement setup that links several digital money issuers with several receiving institutions, with redemption at par value 1.
The move fits Barclays’ longer-running work to find practical uses for blockchain technology 2.

Banks are moving from isolated tests toward shared financial rails

Banks and large corporates have tried blockchain services for more than a decade, yet volumes still trail traditional platforms. The current change leans toward joint infrastructure in place of standalone pilots.
Barclays says interoperability is “essential” and the Ubyx effort targets a “common globalised acceptance network” for regulated digital money 1.
The approach also reaches beyond payments. Barclays bought a minority stake in United Fintech, a platform backed by a bank consortium that includes Citi and BNP Paribas, to tap vetted technology solutions 3.
The direction supports shared standards and reduces the risk of fragmented systems, which marks a more settled phase for digital finance plumbing.