Banking Giant Barclays Mulls Crypto Payments Push: Bloomberg
Analysis
Price Impact
MedBarclays exploring crypto payments could signal broader institutional adoption, increasing demand for underlying blockchain technologies and potentially major cryptocurrencies used for transactions or collateral.
Trustworthiness
HighThe information comes from bloomberg, a reputable financial news source, citing sources familiar with the matter. barclays' previous investment in ubyx and public statements from their head of digital assets lend further credibility.
Price Direction
BullishIncreased institutional interest and potential adoption by a major bank like barclays typically leads to positive sentiment and demand for crypto assets, especially those that could be integrated into such payment systems.
Time Effect
LongThe implications of a major bank exploring blockchain for payments are significant for long-term adoption and integration of crypto into traditional finance, rather than immediate short-term price swings.
Original Article:
Article Content:
In brief Barclays has requested information from technology providers regarding a potential push into blockchain, according to Bloomberg. The banking giant is said to be considering tokenized deposits and stablecoin payments. Earlier this year, the firm made an investment in stablecoin settlement firm, Ubyx. Publicly traded banking institution Barclays (BCS) is reportedly gathering information for a potential push into blockchain, according to a Friday report from Bloomberg . Sources familiar with the matter said the firm has requested information from “technology suppliers” while it considers a path forward. Its utilization of blockchain may include tokenized deposits and stablecoins, the report said. The U.K.-based banking institution appears to be warming to crypto, investing in stablecoin settlement startup Ubyx after being named as one of a number of leading international banks exploring the joint issuance of a stablecoin last fall. “Specialist technology will play a pivotal role in delivering connectivity and infrastructure to enable regulated financial institutions to interact seamlessly,” Barclays Head of Digital Assets Ryan Hayward said at the time of the Ubyx investment. Now the firm is further investigating those technologies and could ultimately decide on a provider by April, according to Bloomberg. If the firm ultimately decides to offer tokenized deposits or experiment with stablecoins, it would join a list of major banking institutions that have already entered the crypto space. Last year, JPMorgan launched its tokenized deposit token —JPMD—to the Coinbase-incubated Ethereum scaling network, Base , letting institutional clients make payments using a digital representation of their JPMorgan deposits. The firm expanded the token to the Canton Network earlier this year. That decision followed a report that JPMorgan was working on a framework to allow its clients to use Bitcoin and Ethereum as collateral for loans . Plus, publicly traded US Bank began testing its own stablecoin on the Stellar Network, while Citi and Bank of America have registered their own interest as well. Barclays’ potential involvement in the space has not made a splash with shareholders on Friday, as shares in the firm are trading down nearly 4% as the broader market slides. Nevertheless, shares have risen around 54% in the last year of trading. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!