Barclays Plans to Prevent Cryptocurrency Purchases Via Credit Cards From June 27, 2025
Barclays Navigates the Dance Between Traditional Finance and Crypto
In a move that underscores the evolving relationship between traditional finance and cryptocurrency, Barclays, a leading global bank, has been treading carefully in the crypto sphere.
On February 13, 2025, Barclays disclosed a significant investment of $136.8 million in BlackRock's iShares Bitcoin Trust (IBIT) through its 13F filing with the Securities and Exchange Commission (SEC). This investment signifies confidence in Bitcoin's long-term value, particularly amid U.S. regulatory shifts and the Federal Reserve's removal of 'reputational risk' from bank oversight, which could ease crypto banking restrictions.
However, Barclays' crypto journey seems like a balancing act. While the Bitcoin ETF investment shows institutional optimism, the bank's decisions, such as terminating its banking relationship with Coinbase, a major U.S. crypto exchange, and prohibiting customers from using credit cards for crypto purchases, reflect regulatory caution.
The Coinbase split and credit card ban, effective from June 27, 2025, could potentially limit access to exchanges. Barclays' decision aligns with major UK banks like HSBC and Lloyds that have also restricted crypto transactions due to fraud and money laundering concerns.
On the other hand, Barclays is partnering with Form3 in 2025 to gain faster access to the Faster Payments System after ending its partnership with Coinbase. This move is expected to provide Barclays with a more efficient payment infrastructure for its crypto-related operations.
Analysts view Barclays' ETF investment as a pragmatic entry into crypto, avoiding direct exposure risks. By investing in Bitcoin ETFs, Barclays gains exposure to Bitcoin's growth without direct ownership, leveraging regulated ETFs amid a pro-crypto U.S. policy shift.
Meanwhile, Goldman Sachs, another prominent financial institution, has also been active in the crypto space. Goldman Sachs doubled its Bitcoin ETF exposure in Q4 2024, and like Barclays, it continues to invest in Bitcoin ETFs to gain exposure to Bitcoin's growth while mitigating risks associated with direct ownership.
As Barclays continues to navigate the complex world of cryptocurrency, official announcements will provide further clarity on the bank's strategy. In the meantime, the evolving dance between traditional finance and crypto is a fascinating spectacle to observe, as more institutions explore the opportunities and risks presented by this burgeoning asset class.
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