Barclays has made its first direct move into the stablecoin space, taking an equity stake in Ubyx — a sign that major banks are quietly positioning for a future where digital settlement is routine. What Ubyx does Ubyx, founded in 2025, runs a clearing and settlement layer for stablecoins — tokens typically pegged one-for-one to fiat currencies such as the U.S. dollar. Its platform aims to cut through market fragmentation by enabling stablecoins from different issuers and blockchains to be settled and redeemed in a standardized way. A key feature is “universal redemption,” which allows businesses to deposit stablecoins from multiple issuers straight into existing bank accounts at face value. Why it matters Barclays framed the investment as part of its broader work on “new forms of digital money,” stressing that any development would operate within regulatory boundaries. The bank did not disclose the size of its stake or Ubyx’s valuation, but the move places Barclays among a growing group of traditional lenders seeking exposure to stablecoin rails without issuing tokens themselves or stepping outside compliance frameworks. Context and banking interest This isn’t out of the blue: in October Barclays joined other global banks, including Goldman Sachs and UBS, to explore a jointly backed stablecoin denominated in G7 currencies. The bank has also taken part in tokenized deposit pilots and other DLT initiatives — a cautious but consistent approach to blockchain-based settlement. Funding and backers Ubyx raised $10 million in seed funding in mid-2025 from investors that include Galaxy Ventures, Coinbase Ventures, Founders Fund, and Paxos. Barclays’ participation adds a major UK banking name to that roster, blending institutional finance interest with crypto-native capital. Regulatory backdrop and market reality Stablecoins already dominate liquidity within crypto markets — led by Tether, which has roughly $187 billion in circulation — but most activity remains confined to trading venues. Regulators, including the Bank of England, continue to consider limits and safeguards to reduce risks like deposit flight during stress. That regulatory caution shapes how banks move: they want faster, programmable settlement; regulators want control and clear accountability. The bet Infrastructure providers such as Ubyx are betting that standardized, compliant clearing can reconcile banks’ operational needs with regulators’ demands for oversight. Barclays’ backing suggests that major lenders are closely watching whether such midstream infrastructure can deliver secure, regulated pathways for digital money. Read more AI-generated news on: undefined/news