Barclays exploring blockchain settlement tools as banks brace for stablecoin growth: Bloomberg

Barclays is evaluating ways to implement blockchain-based settlement systems as banks respond to the rise of stablecoins and the potential shift of deposits onto digital rails, Bloomberg reported Friday, citing sources close to the matter.

The UK-based lender has reportedly approached technology providers to explore infrastructure that could support payments and tokenized deposits, though discussions are preliminary, and the bank has not publicly announced any launch plans.

The move comes as the stablecoin market approaches $300 billion in circulation, led by Tether’s USDT and Circle’s USDC, which account for roughly 87% of the dollar-pegged token market, according to The Block’s data dashboard. Policymakers and Wall Street analysts expect that figure to grow sharply over the next several years.

U.S. Treasury Secretary Scott Bessent has said the stablecoin market cap could surpass $2 trillion by 2028 and potentially reach $3 trillion by 2030.

Citi projects roughly $1.9 trillion in base-case issuance by the end of the decade, with a bull scenario closer to $4 trillion. Standard Chartered has similarly forecast a roughly $2 trillion market and warned that as much as $500 billion could migrate out of U.S. bank deposits if stablecoins gain broader traction.

Bloomberg Intelligence analysts estimate stablecoins could account for roughly $50 trillion in annual payment volume by the end of the decade.

Progress and peers

Barclays has already started taking steps toward building out a tokenized money infrastructure.

In January, the bank acquired a stake in U.S.-based stablecoin settlement startup Ubyx, marking its first direct investment in a company focused on stablecoin technology. Barclays said at the time that the move aligned with its strategy to explore "new forms of digital money" and develop tokenized money within the regulatory perimeter.

Other banks have already moved on from exploration to execution.

JPMorgan in November launched 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. The tokenized deposit system represents traditional bank balances onchain and is built for regulated, institutional use.