- Barclays reviews blockchain partners to support stablecoins and deposits
- PYUSD liquidity growth intensifies competition between banks and fintech
- Stablecoin payments projected to surpass $50 trillion annually
Barclays has started reviewing blockchain technology partners as stablecoin liquidity reshapes global payments. The $2 trillion lender is assessing firms that can help build infrastructure for stablecoins and tokenized deposits. This effort reflects a broader shift within traditional finance toward digital settlement systems.
The bank has sent requests for information to selected technology providers. Executives plan to shortlist potential partners by April. The proposed platform would support payments and deposits on blockchain rails. Moreover, it could expand into settlement services and cross border transfers.
Stablecoins sit at the center of the strategy. These digital tokens usually track fiat currencies such as the US dollar. They enable transfers at any time of day. Consequently, they challenge banking systems that rely on limited operating hours.
Bloomberg Intelligence estimates stablecoins could process more than $50 trillion in annual payments by 2030. That forecast has increased urgency among global lenders. Besides, demand for instant payment solutions continues to grow across corporate and retail markets.
Tokenized deposits also feature prominently in the discussions. These assets represent customer deposits on chain within regulated banks. Therefore, institutions can maintain control over client funds while offering blockchain based efficiency.
PYUSD Liquidity and Industry Response
Meanwhile, fintech firms are expanding their stablecoin initiatives. PayPal and MoonPay have launched PYUSDx, a framework for custom stablecoins. The product builds on PayPal’s PYUSD and M0 infrastructure. Businesses can issue application specific tokens with lower operational costs.
Importantly, these tokens connect to PYUSD’s on chain liquidity. That liquidity holds a market value near $4.2 billion. Consequently, companies gain access to an established digital asset base.
Other major banks are also advancing blockchain programs. JPMorgan Chase has rolled out JPM Coin for institutional use. HSBC plans to expand tokenized deposit services in the US and UAE this year. Additionally, several lenders continue testing distributed ledger settlement tools.
However, blockchain volumes remain smaller than traditional payment networks. Banks have explored the technology for over a decade. Significantly, rising demand for instant and cross border payments now accelerates adoption efforts.
Also Read: Solana Co-Founder Says Network Now Surpasses Ethereum in Decentralization Race
