Barclays Makes First Stablecoin Investment With Stake In Ubyx
Barclays has taken its first fairness stake in a stablecoin-related firm, shopping for into US-based Ubyx because the British lender steps up work on what it calls “new types of digital cash”.
Ubyx, launched in 2025, sells itself as a clearing layer for stablecoins, the tokens pegged one for one to fiat currencies.
The pitch is easy, make stablecoins simpler to settle and redeem throughout issuers, so a token from one model doesn’t get handled like a distinct type of cash from one other.
Barclays mentioned the financial institution and Ubyx are dedicated to growing “tokenized cash throughout the regulatory perimeter,” in keeping with a Reuters report Wednesday.
Ubyx Stake Aligns With Barclays’ Push Into Regulated Tokenized Cash
A financial institution spokesperson added, “This funding aligns with Barclays’ strategy to discover alternatives based mostly on new types of digital cash, resembling stablecoins.” Barclays didn’t disclose the dimensions of the stake or Ubyx’s valuation.
The deal lands as markets preserve rewarding the concept tokenization is transferring from pilot initiatives to manufacturing, particularly in funds.
For Barclays, the Ubyx stake additionally suits a broader trade sample, large banks need publicity to stablecoin rails with out stepping exterior compliance traces.
Regulators Press Limits As Stablecoins Move Toward Wider Use
In October, Barclays joined a gaggle of 10 banks exploring the issuance of a 1 to 1 reserve-backed type of digital cash tied to G7 currencies, one other sign that lenders desire a seat on the desk if stablecoins grow to be normal settlement plumbing.
Stablecoins already sit on the centre of crypto market liquidity, even when most utilization nonetheless occurs inside buying and selling venues moderately than at store checkouts.
Tether stays the most important issuer, with about $187B of tokens in circulation, a reminder of how shortly privately issued {dollars} have scaled as soon as crypto customers discovered product-market match.
Ubyx has attracted crypto-native backers too. Reuters cited PitchBook information exhibiting earlier funding from the enterprise arms of Coinbase and Galaxy Digital, giving the startup a mix of conventional finance curiosity and crypto capital.
Regulators, on the similar time, preserve urgent the chance questions that banks can’t ignore. The Bank of England has floated holding limits for systemic stablecoins, partly to cut back the possibility that cash drains from financial institution deposits into non-public tokens throughout stress, even because it builds a wider rule set with the Financial Conduct Authority.
That pressure is the purpose of the present cycle for stablecoins. Banks need sooner settlement and programmable money, regulators need stability and clear traces of accountability, and infrastructure gamers like Ubyx are attempting to make the rails look acquainted sufficient that regulated establishments will really use them.
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