Barclays, one of the United Kingdom’s most storied banks, has made its first foray into the fast-evolving world of stablecoins by acquiring a stake in Ubyx, a U.S.-based startup focused on stablecoin settlement infrastructure. The deal, which took place on January 7, 2026, marks a pivotal moment not only for Barclays but also for the broader banking sector as traditional financial institutions continue to grapple with the rapid rise of digital assets. According to Reuters, this investment is Barclays’ first direct capital deployment in a company centered on stablecoin technology, underscoring the bank’s growing interest in “new forms of digital money.”
Ubyx, launched in 2025, has quickly established itself as a significant player in the stablecoin space. The company operates a clearing system designed to reconcile transactions across different stablecoin issuers—an increasingly vital function as the market for these digital tokens expands at breakneck speed. Ubyx’s potential was recognized early on: in July 2025, it raised $10 million in a seed round led by Galaxy Ventures, with participation from major industry names like Coinbase Ventures, Founders Fund, and VanEck, according to The Block.
Barclays’ move comes amid a surge of bank-led initiatives aimed at building the next generation of financial infrastructure. In October 2025, Barclays joined a consortium of ten major global banks—including Goldman Sachs and UBS—to explore the issuance of a regulated stablecoin pegged to a basket of G7 currencies. This collaborative approach signals a shift in how banks are positioning themselves in the digital asset space, moving from mere observers to active participants in shaping the regulatory and technological landscape around tokenized money.
“This aligns with the bank’s strategy to explore new forms of digital money,” Barclays said, emphasizing its intent to work with Ubyx on developing “tokenized money within the regulatory perimeter.” While the bank did not disclose the size or valuation of the deal, industry observers note that the partnership could set the stage for further innovation in how banks settle and clear digital transactions.
Ubyx’s profile received an additional boost in December 2025 when Brian Quintenz, former commissioner of the U.S. Commodity Futures Trading Commission (CFTC), joined the startup as an adviser. Quintenz’s regulatory experience is expected to help guide Ubyx as it navigates the complex and rapidly shifting landscape of digital asset regulation in the United States and beyond.
The timing of Barclays’ investment is no coincidence. The stablecoin market has ballooned in recent years, with total supply surpassing $290 billion as of early 2026, according to data from The Block’s dashboard. Tether’s USDT alone accounts for roughly $187 billion—more than 64% of the market. Stablecoins, which are digital tokens pegged to traditional currencies like the U.S. dollar or euro, have become essential tools for settlement and liquidity within crypto markets. Their usage is also growing in cross-border payments, offering a faster and potentially cheaper alternative to traditional banking rails.
Despite the explosive growth, only a handful of banks have actually issued their own stablecoins. Societe Generale’s crypto unit, SG-FORGE, launched a euro-backed stablecoin in 2023, with about 67.8 million euros in circulation, and followed up with a U.S. dollar token last year, which now has roughly $26.9 million outstanding. In the U.S., major lenders like Bank of America and Citigroup have publicly stated they are examining stablecoin issuance, but neither has launched a token to date.
Barclays, for its part, has chosen a more measured approach. Rather than jumping directly into issuing its own stablecoin, the bank has focused on building the underlying infrastructure and participating in industry consortia. This strategy allows Barclays to shape the direction of digital money while managing the risks associated with regulatory uncertainty and market volatility.
That caution is not without precedent. In June 2025, Barclays restricted customer exposure to cryptocurrencies by blocking purchases via credit cards, citing concerns about volatility and fraud. Other UK banks, including Lloyds Bank and Chase UK, have implemented similar restrictions in recent years. This cautious stance reflects the broader tension facing traditional banks: how to balance the promise of innovation with the need to protect customers and maintain regulatory compliance.
The broader European banking sector is also moving forward with its own digital currency plans. On September 25, 2025, a group of nine European banks—including ING, UniCredit, KBC, Danske Bank, DekaBank, SEB, CaixaBank, Banca Sella, and Raiffeisen Bank International—announced the formation of a new company to launch a MiCAR-compliant, euro-denominated stablecoin. The Amsterdam-based venture is expected to issue its token in the second half of 2026, according to Reuters. MiCAR, or Markets in Crypto-Assets Regulation, is the European Union’s comprehensive framework for governing digital assets, and compliance will be key for any new stablecoin hoping to gain traction in the region.
As stablecoins continue to expand in scale and use cases, the involvement of established banks like Barclays is seen as a vote of confidence in the future of regulated digital assets. But it’s also a sign that the industry is maturing. “The move advances Barclays’ stated plan to explore ‘new forms of digital money’ and follows its October involvement in a 10-bank consortium formed to explore a joint stablecoin,” Reuters noted in its coverage.
Yet, the road ahead is far from straightforward. Stablecoins remain subject to intense regulatory scrutiny, particularly in the wake of high-profile failures and concerns about their impact on financial stability. The entry of traditional banks into the space may help address some of those concerns by bringing established risk management practices and regulatory oversight to an industry that has, at times, been characterized by opacity and rapid, unregulated growth.
For Barclays, the investment in Ubyx is both a calculated risk and a potential blueprint for how banks can participate in the new digital economy. By focusing on infrastructure and collaboration, the bank is positioning itself at the intersection of traditional finance and emerging technology—a spot that could prove lucrative as the world’s financial system continues its digital transformation.
As the stablecoin market grows and regulatory frameworks take shape, all eyes will be on Barclays and its partners to see whether their cautious but ambitious approach can deliver on the promise of safer, faster, and more efficient digital money. For now, the bank’s stake in Ubyx represents a significant step forward in bridging the gap between old and new finance, offering a glimpse of what the future of money might look like.