In a bold move, Barclays has ventured into the domain of regulated “tokenized money” by financially backing Ubyx, a stablecoin settlement initiative based in the United States. This investment signifies Barclays’ inaugural direct investment in a stablecoin technology firm. While financial specifics of the deal are not public, the investment highlights Barclays’ commitment to aligning its digital currency objectives with regulatory standards.
What is Behind Barclays’ Strategic Investment?
The focus of Barclays’ financial strategy is on enhancing the infrastructure and settlement mechanisms of stablecoin technology, leaving the direct issuance to others. Speaking with insiders, Reuters reported that Barclays intends to collaborate with Ubyx on regulatory-compliant tokenized money systems. The bank’s long-term goal is to foster digital currency solutions that seamlessly integrate with established financial frameworks and are subject to thorough audits.
Established in 2025, Ubyx offers a clearing system that facilitates the reconciliation of transactions among different stablecoin issuers. In a notable development last July, the firm wrapped up a $10 million seed funding round spearheaded by Galaxy Ventures. Other investors included Coinbase Ventures, Founders Fund, and VanEck. Adding credibility to its advisory team, the company welcomed former US Commodity Futures Trading Commission member Brian Quintenz just last month.
Why Are Global Banks Eyeing Tokenized Money?
The investment from Barclays comes at a critical juncture as the stablecoin sector witnesses rapid expansion and intensifying regulatory conversations. This step forward underscores the bank’s ambition to stay abreast of and steer this burgeoning technology. While Barclays remains cautious about cryptocurrencies for its retail clients, it is eager to take a pioneering role in the field’s infrastructure.
This move is part of broader global banking efforts targeting tokenized money. Recently, Barclays joined forces with nine other financial titans, including Goldman Sachs and UBS, to explore stablecoins backed by G7 currencies. Similarly, a separate initiative in Europe, involving banking giants like ING and UniCredit, aims to introduce a euro-based stablecoin by 2026, in compliance with MiCAR regulations.
Stablecoins have captured attention as market data reveal substantial growth, amassing over $290 billion in total supply. Tether‘s USDT dominates with more than $187 billion, accounting for over 64% of the market. Predominantly used for settlement and liquidity, their growing utility in cross-border payment systems is becoming increasingly relevant.
“Barclays sees great potential in shaping digital currency infrastructures that meet regulatory requirements,” a bank representative stated.
So far, banks have largely refrained from issuing stablecoins. Societe Generale’s SG-FORGE remains among the few, with euro and dollar-pegged coins. Meanwhile, U.S. banking leaders like Bank of America and Citigroup are still in exploratory phases. Barclays adopts a balanced approach by limiting crypto purchases on credit cards and advancing infrastructure through strategic partnerships.
