Barclays Evaluates Blockchain Technology for Enhanced Payment and Deposit Services

Barclays Explores Blockchain Platform for Banking Services

Barclays Plc is evaluating the development of a blockchain platform for processing various banking services, including payments, stablecoins, and tokenized deposits. The UK-based lender has issued a request for information to potential technology suppliers, with the goal of selecting providers by April 2024.

This move is part of a larger trend in the banking industry, as JPMorgan Chase & Co. and HSBC Holdings Plc have also begun exploring the use of blockchain technology for banking services. JPMorgan has launched a deposit token called JPM Coin, which can be used for making payments, while HSBC plans to expand its tokenized deposit service to corporate clients in the US and United Arab Emirates.

Stablecoins, which are digital tokens pegged to an asset like the dollar, are gaining popularity in payments and could account for more than $50 trillion in payments annually by 2030, according to Bloomberg Intelligence estimates. Tether Holdings SA and Circle Internet Group Inc. are two of the largest stablecoin issuers, with their respective tokens USDT and USDC.

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Banks are seeking to establish blockchain systems that can handle payments and settlement around-the-clock, in an effort to defend their turf and take advantage of the opportunity presented by stablecoins. While these systems are still in their nascent stages, they hold promise for increasing efficiency and reducing costs in the banking industry.