Barclays eyes blockchain for payments, deposits

Banking giant Barclays explores blockchain for payments amid Meta's stablecoin revival and a $310 billion market.

  • Barclays is reportedly seeking vendors for a blockchain platform to handle payments, deposits, and crypto applications like stablecoins.
  • The bank’s exploration aligns with its recent investment in a stablecoin clearing platform and broader industry interest in tokenized finance.
  • Major tech firms, including Meta Platforms, are also revisiting stablecoin projects, posing both opportunity and competition for traditional banks.
  • The stablecoin market is approaching $310 billion in total value, according to DeFiLlama data.

UK banking giant Barclays is exploring blockchain technology for core services like payments and deposits, according to reports. This move signals a major financial institution’s push to modernize its legacy infrastructure with digital ledgers.

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The bank has issued requests for information to technology suppliers and could select a vendor by April. Consequently, this initiative follows Barclays‘ recent first investment in a US-based stablecoin clearing platform.

This trend extends beyond traditional finance, as Meta Platforms is reportedly revisiting its stablecoin ambitions. Stablecoins enable faster, cheaper settlement compared to traditional payment systems.

For banks, however, widespread adoption presents a competitive risk to their control over deposits. The debate is especially relevant in the United States, where stablecoin legislation is being weighed.

Meanwhile, the combined market capitalization of stablecoins is approaching $310 billion. Large-scale adoption could shift significant liquidity away from traditional bank accounts.

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