$2T Barclays Explores Blockchain For Stablecoin Payments and Tokenized Deposits

U.K. financial giant Barclays, with up to $2 trillion in assets under management (AuM), is reportedly looking to create a blockchain platform. The bank plans to use the blockchain platform for payments, stablecoins, and tokenized deposits, expanding its offerings as it looks to match similar moves from rivals like JPMorgan.

Barclays Considers Blockchain For Stablecoin Payments and Tokenized Deposits

According to a Bloomberg report, the banking giant has sent out a request for information to tech providers for their opinions on creating a blockchain platform to handle processes such as payments. The firm joins the likes of JPMorgan, which is looking to incorporate blockchain into its banking services.

Barclays is reportedly evaluating how to build out new offerings using blockchain technology. The bank’s adoption of blockchain could include using the platform for payments, such as stablecoins and tokenized deposits. According to Bloomberg, the bank plans to select providers as early as April.

As CoinGape reported, Barclays had acquired a stake in Ubyx, a stablecoin settlement company, last month. At the time, Ryan Hayward, the Head of Digital Assets, noted that as the landscape of tokens, blockchains, and wallets evolves, specialist technology will play a pivotal role in delivering connectivity and infrastructure to enable regulated financial institutions to interact seamlessly.

It is worth noting that banks like JPMorgan already offer tokenized deposits, with its JPM coin, which it launched on the Ethereum layer-2 network Base in November last year. Earlier this year, the bank announced plans to expand the deposit token to the Canton Network.

Several other firms are also looking to adopt stablecoins. As CoinGape reported, tech giant Meta is looking to integrate stablecoin payments by the second half of this year. The firm has also reached out to third parties to pilot its stablecoin.

MoonPay and PayPal Launch New Stablecoin Offering

Amid Barclays move to venture into the stablecoin space, M0, top off-ramp service platform MoonPay, and PayPal have launched PYUSDx, which enables teams to launch custom stablecoins backed by PayPal’s PYSUD stablecoin. “PYUSDx is designed to help builders launch and scale application-specific stablecoins while significantly lowering the technical and operational overhead to get started,” M0 said.

PYUSDX is built on M0’s stablecoin platform, while MoonPay is the stablecoin issuer. These custom stablecoins will be able to tap into PayPal’s on-chain liquidity, with PYUSD currently boasting a market cap of almost $4.2 billion.

PYUSD ranks 6th among stablecoins by market cap. Earlier this week, reports surfaced that Stripe was looking to acquire PayPal. However, PayPal has denied these reports, stating that it is not in talks with anyone to sell itself.