Barclays Weighs Blockchain‑Based Settlement Platform as Stablecoin Demand Grows
London, 28 February 2026 – Barclays is in the final stages of selecting a technology partner for a new settlement platform that would bring stablecoins and tokenised deposits into its core banking workflow. According to a Bloomberg report, the British bank has shortlisted several providers and could make a vendor decision as early as April.
The move marks a clear pivot from the bank’s historically cautious approach to crypto‑related services. Earlier this year Barclays announced a ban on credit‑card purchases of crypto assets, a stance that now appears to be softening in light of rising institutional interest in digital money and supportive regulatory signals.
What the Platform Aims to Do
The prospective system is designed to enable:
- Instant settlement of stablecoins – allowing corporate and retail clients to move value on a public‑ledger network with the speed and finality of blockchain.
- Tokenised deposits – converting traditional fiat deposits into digital representations that can be transferred and settled on‑chain.
- Inter‑bank clearing – providing a shared infrastructure that could be used by multiple financial institutions for cross‑border and domestic payments.
Barclays has reportedly engaged with multiple blockchain vendors, assessing factors such as scalability, regulatory compliance, and integration with existing core banking systems.
Regulatory Context
The United States’ “GENIUS Act” – recently enacted legislation that creates a framework for dollar‑backed tokens – is cited as a catalyst for the bank’s renewed focus. By defining clear rules for stablecoins that are fully collateralised by U.S. dollars, the Act reduces legal uncertainty and encourages banks to experiment with blockchain‑based settlement solutions.
In Europe, the European Central Bank’s ongoing work on a digital euro and the forthcoming EU Markets in Crypto‑Assets (MiCA) regulation provide additional clarity on how tokenised assets can be used within the traditional financial system.
Consortium Activity
Barclays is also a participant in a bank‑led consortium that is evaluating a reserve‑backed digital currency built on a public blockchain. The group’s ambition is to create a G7‑pegged token that could serve as a universal bridge for cross‑border settlements, cutting down on friction and reliance on correspondent banking networks.
According to the Financial Times, the consortium is exploring the use of widely accepted fiat‑pegged assets, such as the US dollar, euro, and yen, to underpin the digital token. This effort aligns with the broader industry trend of leveraging blockchain to streamline international payments while preserving regulatory oversight.
Industry Landscape
Barclays is not alone in this strategic shift. JPMorgan, HSBC, and other global banks have invested heavily in blockchain pilots, ranging from private‑ledger solutions to public‑chain integrations for tokenised securities. The collective momentum suggests that stablecoins are being positioned as a core component of future payment rails rather than a peripheral novelty.
Analysis
Barclays’ decision to move forward with a blockchain‑based settlement platform signals several important developments:
- Commercial Viability – The bank’s willingness to allocate resources to a public‑ledger solution indicates confidence that the technology can meet operational and compliance standards required for high‑value banking transactions.
- Competitive Pressure – As peers roll out similar capabilities, failing to adopt could leave Barclays at a strategic disadvantage, particularly in serving corporate clients that demand faster, cheaper cross‑border payments.
- Regulatory Alignment – By aligning its roadmap with the GENIUS Act and other emerging frameworks, Barclays is positioning itself to be a compliant early‑adopter, potentially influencing future policy through practical implementation experience.
However, challenges remain. Integrating public‑chain settlements with legacy core banking systems is technically complex, and the bank must navigate issues such as transaction finality, privacy, and anti‑money‑laundering (AML) monitoring on a decentralized network.
Key Takeaways
| Insight | Implication |
|---|---|
| Vendor selection by April | Barclays could become one of the first major Western banks to operationalise a public‑ledger settlement system within the next year. |
| Stablecoin focus | The platform will likely support fiat‑backed stablecoins, reflecting regulatory comfort with fully collateralised digital assets. |
| Consortium participation | Involvement in a G7‑pegged token project underscores a collaborative approach to building interoperable global payment standards. |
| Industry trend | The move mirrors a broader shift among Tier‑1 banks toward blockchain infrastructure, suggesting stablecoins will play a larger role in mainstream finance. |
| Regulatory synergy | Alignment with the GENIUS Act and upcoming EU regulations reduces legal risk and may accelerate adoption among corporate clients. |
Barclays’ next steps—finalising a technology partner and commencing pilot deployments—will be closely watched by both the traditional banking sector and the crypto community. The outcome could provide a template for how large, regulated institutions can safely integrate blockchain technology into everyday financial operations.
This article was produced with the assistance of AI‑driven editorial tools.
Source: https://thedefiant.io/news/tradfi-and-fintech/barclays-evaluates-blockchain-based-settlement
