TL;DR:
- Barclays is in preliminary talks with tech providers about blockchain settlement infrastructure for payments and tokenized deposits, with no launch plan announced.
- Stablecoins near $300B, led by USDT and USDC at roughly 87% of dollar-pegged tokens, are driving banks to modernize rails as forecasts point to trillions and $50T annual payment volume.
- Barclays’ Ubyx stake and JPMorgan’s JPM Coin on Base illustrate a shift toward regulated tokenized deposits as onchain bank balances.
Barclays is evaluating blockchain-based settlement systems as banks brace for stablecoins and the possibility that deposits shift onto digital rails, Bloomberg reported Friday, citing people close to the matter. In early discussions, the U.K. lender has approached technology providers about infrastructure that could support payments and tokenized deposits, while keeping any launch plans off the public roadmap. The backdrop is a bank-led push to modernize settlement plumbing as stablecoin forecasts climb into the trillions and institutions start asking how digital deposits would work in practice. It has backed settlement infrastructure and consortium efforts, signaling infrastructure-first.
Stablecoin scale is forcing banks to rethink payment rails
The urgency is rising as the stablecoin market approaches $300 billion in circulation, dominated by Tether’s USDT and Circle’s USDC, which together represent roughly 87% of the dollar-pegged token segment, according to a market data dashboard cited in the report. That concentration gives banks a clear benchmark for scale and distribution while regulators watch systemic implications. For incumbents, stablecoin growth is turning payment rails into a strategic battleground, pushing treasury, operations, and product teams to reassess settlement speed, hours of availability, and the role of tokenized deposits. Barclays says talks are preliminary, with no launch.
Policy and sell-side projections are amplifying the pressure. U.S. Treasury Secretary Scott Bessent has said stablecoin market cap could surpass $2 trillion by 2028 and potentially reach $3 trillion by 2030. Citi sees about $1.9 trillion in base-case issuance by decade end, with a bull scenario closer to $4 trillion, while Standard Chartered forecasts roughly $2 trillion and warns up to $500 billion could migrate from U.S. bank deposits. Bloomberg Intelligence puts the prize at about $50 trillion in annual payment volume. In short, scale forecasts are forcing banks to reprice deposit risk over time.
Barclays has already taken a concrete step, taking a stake in stablecoin settlement startup Ubyx in January, its first direct investment tied to stablecoin technology. The bank said the move aligned with its strategy to explore “new forms of digital money” and develop tokenized money within the regulatory perimeter. Meanwhile, JPMorgan has moved further, launching its USD-denominated deposit token, JPM Coin, on Coinbase’s Base network, allowing institutional clients to settle transactions around the clock on public blockchain rails. Tokenized deposits as regulated onchain balances are the benchmark. That makes Barclays’ evaluation an infrastructure catch-up sprint.
