Barclays is reportedly assessing a possible move into blockchain infrastructure, as traditional financial institutions adapt to the increasing influence of stablecoins and the migration of deposits onto digital payment rails.
Barclays Seeks Tech Provider To Launch New Blockchain Settlement Initiative
Barclays is reportedly evaluating blockchain technology for its core banking operations, according to a Friday report from Bloomberg.
Sources with knowledge of the discussions said the London-based financial services giant has sought input from various technology providers as it evaluates its next steps. According to the report, potential applications under review include payments, tokenized deposits, and crypto-related applications such as stablecoins.
Notably, the talks remain in the early stages, and the bank has yet to make any formal announcement regarding a launch. Per Bloomberg, Barclays could ultimately select a technology provider as early as April.
Barclays’ Progress and Peer Moves
The potential move would build on Barclays’ growing involvement in the digital asset sector. In January, the bank took a stake in U.S.-based stablecoin clearing startup Ubyx, marking its first direct investment in a company dedicated to stablecoin infrastructure.
Several banks have already progressed from exploration to implementation. In November, JPMorgan launched its USD-denominated deposit token, JPM Coin, on the Coinbase-incubated Ethereum scaling network, Base, enabling institutional clients to settle transactions 24/7 on public blockchain rails. The tokenized deposit system mirrors traditional bank balances on-chain and is designed specifically for regulated, institutional use.
The move comes after reports that JPMorgan was developing a framework to let clients use Bitcoin and Ethereum as collateral for loans.
More recently, HSBC has introduced tokenized deposits as part of its broader effort to advance blockchain-based payment solutions.
Moreover, three years after shelving Diem, Meta Platforms is reportedly eyeing a comeback in stablecoins, signaling Big Tech’s renewed push into blockchain payments.
These institutions are investigating how blockchain technology can enhance transparency and efficiency in traditional financial processes by executing transactions on decentralized networks, reducing reliance on intermediaries, and enabling faster settlement.
Source: https://zycrypto.com/uk-banking-heavyweight-barclays-weighs-major-step-into-blockchain-based-payments-and-deposits/
