Barclays Makes Foray Into Stablecoin Investment With Ubyx Investment

Barclays invests in Ubyx, a US stablecoin clearing platform, marking its first move into regulated digital assets and tokenized money.

Lately, Barclays announced its first direct stake in a stablecoin company. 

The UK banking giant chose Ubyx, a US-based platform that helps clear and settle digital money. While Barclays kept the specific investment amount private, the move shows a new direction for one of the world’s most important banks.

This decision comes at a time when traditional finance and blockchain technology are merging. 

Recently, banks no longer watch from the sidelines. They are now building the pipelines needed to move money as easily as a standard wire transfer. 

Why Barclays Invested in the Ubyx Clearing Platform

The main reason for this deal is infrastructure. Ubyx acts as a bridge between regulated digital money and old-school bank accounts. 

It allows companies to redeem stablecoins directly into their bank accounts at par value. This means a dollar on the blockchain will always be a dollar when it hits a traditional account.

As the world of blockchains and wallets grows, the space will need more and more specialist tools. These tools allow banks to interact with new types of money without breaking current rules. 

As such, Ubyx provides the “glue” that keeps everything running.

The Vision Behind the Ubyx Clearing Platform

Ubyx is not a typical startup. Its founder, Tony McLaughlin, is a payments veteran with over 20 years of experience at Citi. 

He spent his career managing cash flows for some of the biggest firms on earth. He even helped design the Regulated Liability Network (which is a major project for tokenised bank deposits).

In March of last year, McLaughlin launched Ubyx to create a network where every regulated firm can offer digital wallets.

Related Reading: Stablecoins Fuel Everyday Crypto Adoption in Venezuela – TRM Labs

Major Partners Joining the Stablecoin Network

Ubyx has already attracted some of the biggest names in the industry. Its platform supports stablecoins from leaders like Ripple, Paxos and AllUnity. 

This creates a “many-to-many” network where different types of digital money can work together. In June of last year, the company also raised $10 million in a seed round.

That funding round included big names like Galaxy Ventures and Coinbase Ventures. 

Even Peter Thiel’s Founders Fund and VanEck joined in. At the end of it all, the fact that Barclays is now part of this group shows how much faith the market has in Ubyx. 

It is no longer just a crypto project. Instead, it has now become a serious piece of financial technology.

A Change in Strategy for Barclays

This investment is a major turn in how Barclays views the digital space. For years, the bank was very cautious and often warned customers about the dangers of volatility. 

In June, Barclays even blocked people from using Barclaycard credit cards to buy crypto.

However, this new investment shows that the bank sees a difference between “crypto” and “regulated digital money.” 

Stablecoins are pegged to real currencies like the US dollar or the British pound. They also offer the speed of a blockchain without the wild price swings. Because of this, Barclays is betting that these assets will eventually become a bigger part of global commerce.

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