Barclays is assessing blockchain-based settlement systems as the stablecoin market approaches $300 billion in circulation, signaling how seriously traditional banks are taking the shift toward digital dollar infrastructure. With policymakers projecting trillions more in growth this decade, lenders are preparing for a potential migration of deposits onto blockchain rails.
According to a Bloomberg report citing people familiar with the matter, the UK-based bank has approached technology providers to evaluate infrastructure that could support blockchain payments and tokenized deposits. The discussions remain early stage, and Barclays has not announced formal product plans. Still, the internal review reflects mounting pressure on banks to modernize settlement systems as stablecoins gain institutional traction.
Can Banks Contain The Stablecoin Shift?
The stablecoin market is currently dominated by Tether’s USDT and Circle’s USDC, which together account for roughly 87% of dollar-pegged tokens. Forecasts suggest the sector could expand sharply. U.S. Treasury Secretary Scott Bessent has projected the market could surpass $2 trillion by 2028 and potentially reach $3 trillion by 2030. Citi estimates a base-case scenario of $1.9 trillion in issuance by the end of the decade, while Standard Chartered has warned that up to $500 billion could flow out of U.S. bank deposits if stablecoins achieve broader adoption.
Barclays has already taken preliminary steps toward building tokenized money capabilities. In January, it acquired a stake in U.S.-based stablecoin settlement startup Ubyx, marking its first direct investment in a company focused on stablecoin infrastructure. At the time, the bank said the move aligned with its strategy to explore “new forms of digital money” and develop tokenized money within the regulatory perimeter.
Other major institutions are further along. JPMorgan launched its USD-denominated deposit token, JPM Coin, on Coinbase’s Base network in November, enabling institutional clients to settle transactions around the clock on public blockchain infrastructure. Bloomberg Intelligence analysts estimate stablecoins could facilitate $50 trillion in annual payment volume by the end of the decade. As tokenized deposits move from pilot to production, the next catalyst will likely come from whether Barclays shifts from exploration to execution.
