Barclays is reportedly assessing blockchain platforms to support core banking activities including payments, deposits and crypto-related functions such as stablecoins and tokenized deposits, Bloomberg reported Friday, citing people familiar with the matter.
According to the report, the UK lender has sent requests for information to several unnamed technology providers and could pick a vendor as early as April. The effort dovetails with Barclays’ recent moves into digital assets—last month the bank invested in Ubyx, a US-based stablecoin clearing platform—and comes amid unconfirmed reports tying the bank to a possible role in an IPO for crypto hardware maker Ledger.
Bloomberg placed Barclays’ initiative within a wider industry trend: banks and Big Tech are reassessing stablecoins because they can enable faster, lower-cost and round-the-clock settlement compared with legacy payment rails. Financial institutions are exploring tokenized deposits and on-chain payment systems as ways to simplify cross-border transfers and cut intermediary layers.
The renewed interest in privately issued digital dollars is not limited to banks. Meta Platforms has reportedly revisited stablecoin plans after shelving its Diem project, highlighting Big Tech’s renewed focus on blockchain-based payments.
For traditional lenders, widely adopted stablecoins present both upside and downside. They could unlock new payment services and efficiencies, but may also siphon liquidity from conventional deposits and erode banks’ control over payment flows—fundamental elements of their business models.
Regulators are actively debating stablecoin policy, particularly in the United States. Lawmakers are weighing market structure and legislation that would govern stablecoin issuers, including whether issuers should be allowed to offer yield or rewards. Even absent yield-bearing features, large-scale adoption of tokenized dollars could divert deposits away from banks.
Stablecoins’ combined market capitalization is approaching $310 billion, according to DeFiLlama.
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