- Trending
- Comments
- Latest
Barclays has acquired a stake in Ubyx, a U.S.-based stablecoin settlement startup, marking the British bank’s first direct investment in digital currency infrastructure as traditional lenders increasingly explore regulated tokenized money.
The deal, reported by Reuters on Wednesday, positions Barclays to participate in stablecoin clearing systems without issuing its own digital currency.
At the heart of the Barclays ubyx investment is the bank’s stated strategy to explore regulated forms of digital cash rather than unbacked cryptocurrencies.
Reuters reported that Barclays said the stake aligns with its plan to explore “new forms of digital money,” a phrase that underscores the bank’s focus on innovation without stepping outside regulatory boundaries.
Barclays also indicated that it intends to work with Ubyx to develop “tokenized money within the regulatory perimeter,” according to the report. — Barclays, via Reuters.
Ubyx, founded in 2025, operates a clearing system designed to reconcile transactions across multiple stablecoin issuers, a technical challenge that has become increasingly important as the stablecoin market fragments across different tokens and platforms.
The startup raised $10 million in a seed round last July led by Galaxy Ventures, with participation from Coinbase Ventures, Founders Fund, and VanEck.
The Barclays ubyx investment therefore positions the bank not as a stablecoin issuer, but as a participant in the underlying infrastructure that could support interoperable, compliant digital settlement systems.
Ubyx’s technology focuses on clearing and reconciliation — a less visible but critical layer of financial markets. As stablecoins grow beyond trading pairs into payment and treasury use cases, banks and regulators have emphasized the need for robust settlement rails.
The relevance of the Barclays ubyx investment is amplified by the caliber of advisers and backers surrounding the startup.
Brian Quintenz, a former commissioner of the U.S. Commodity Futures Trading Commission whose nomination to lead the agency was withdrawn last fall, joined Ubyx as an adviser in December. His involvement adds regulatory experience to a company operating at the intersection of finance and policy.
Total stablecoin supply has now surpassed $290 billion, according to data from The Block, with Tether’s USDT accounting for more than 64% of the market. While most stablecoin usage remains concentrated in crypto trading and liquidity management, banks are increasingly examining how the instruments could be adapted for cross-border payments and wholesale settlement.
Within this context, the Barclays ubyx investment reflects a broader institutional preference for infrastructure plays over issuing tokens directly.
The Ubyx deal follows a series of collaborative initiatives involving major banks. In October, Barclays joined a consortium with nine other institutions — including Goldman Sachs and UBS — to explore issuing a regulated stablecoin pegged to a basket of G7 currencies. That effort, like the Barclays ubyx investment (7), emphasizes shared rails and compliance-first design rather than unilateral launches.
A separate European initiative announced in September last year took a similar approach. Nine banks, including ING, UniCredit, and CaixaBank, said they would form a new company to issue a MiCAR-compliant, euro-denominated stablecoin, with issuance expected in the second half of 2026, Reuters reported.
Despite the momentum, only a handful of banks have issued stablecoins so far. Société Générale’s crypto unit, SG-FORGE, launched a euro-backed token in 2023 and a U.S. dollar version last year, both with relatively modest circulation. U.S. lenders such as Bank of America and Citigroup have said they are examining issuance but have yet to launch products.
Against that backdrop, the Barclays ubyx investment illustrates a cautious but deliberate approach — building exposure through partnerships and equity stakes rather than balance-sheet issuance.
Barclays’ move into stablecoin infrastructure stands in contrast to its retail-facing crypto restrictions. In June, the bank blocked cryptocurrency purchases via credit cards, citing concerns around volatility and fraud. Other UK lenders, including Lloyds Bank and Chase UK, have taken similar steps.
This dual strategy highlights the tension shaping the Barclays ubyx investment: embracing innovation at the institutional level while limiting perceived risks for consumers.
By focusing on regulated settlement technology, Barclays appears to be signaling that tokenized money has a future — but only within clearly defined rules.
As stablecoins continue to scale and regulators finalize frameworks across jurisdictions, the Barclays ubyx investment may serve as an early indicator of how global banks intend to participate in digital money markets without fully crossing into crypto issuance.
