As financial institutions increasingly explore digital assets, UK banking giant Barclays has invested in Ubyx, a platform that supports the exchange of stablecoins and tokenized deposits.

The amount of investment was not disclosed but marked Barclays’ first venture into a stablecoin company. Prior to this, other well-known entities like Coinbase and Galaxy Digital had already shown support for Ubyx.

Barclays aims to integrate digital assets under the regulatory framework of financial services.

Moving Incrementally

The acceleration in institutional investments in digital assets follows the proposal and passage of the GENIUS Act, which regulates stablecoins. Many banks were previously hesitant due to compliance issues but are now making progress with their own plans.

For instance, JPMorgan Chase launched JPMCoin, targeting transfers among institutional clients. Similarly, while Citi is considering a stablecoin, it views tokenized deposits as more promising for its purposes.

Redeeming at Par

While traditional banks are adopting a cautious approach to stablecoins, other entities are forging ahead with their initiatives. Examples include Sony planning to launch a stablecoin for its gaming ecosystem and Klarna delving into buy now, pay later solutions.

The early discussions around stablecoins centered on Circle and Tether but have evolved to recognize the likely highly fragmented nature of the market.

A platform like Ubyx becomes especially appealing because it could serve as a central hub connecting various offerings. “Anyone can issue a token,” Hugentobler noted, “but the key winners will be those that ensure they are redeemable at par within the banking ecosystem. FIs need interoperability between tokenized deposits and stablecoins, which Barclays understands.”