Financial Performance - Barclays achieved a return on tangible equity (RoTE) of 11.3% and top-line income grew by 9% year-on-year to GBP 29.1 billion [2][3] - The cost-income ratio improved to 61%, and the group loan loss rate was 52 basis points, within the guidance of 50-60 basis points [2][3] - The CET1 ratio ended the year at 14.3%, with a capital generation of 173 basis points from profits [7][10] Business Lines and Key Metrics - The group plans to maintain broadly stable Investment Bank RWAs at around GBP 200 billion, with expectations of more than 5% loan growth annually to 2028 [5][6] - Structural hedge income increased by GBP 1.2 billion to GBP 5.9 billion, contributing 46% of 2025 group NII, excluding the Investment Bank [12][13] Market Data and Key Metrics - The deposit base increased by GBP 25 billion across customer segments, with strong corporate growth in the International Corporate Bank and improved market share in the UK Corporate Bank [12][13] - The average liquidity coverage ratio (LCR) was 170%, representing GBP 131 billion in excess of regulatory requirements [12] Company Strategy and Industry Competition - Barclays is focused on sustainable higher returns, simplifying processes, and exiting non-strategic businesses while prioritizing growth in high-returning UK businesses [3][4] - The company is exploring digital assets and tokenization to enhance client services and is actively engaged in the UK industry innovation [14][15] Management's Comments on Operating Environment and Future Outlook - Management is confident in delivering Group RoTE greater than 12% in 2026 and more than 14% in 2028, supported by stable income streams and planned efficiency savings [4][6] - The company emphasizes a disciplined capital allocation strategy, prioritizing regulatory capital, shareholder distributions, and selective investments [6][10] Other Important Information - Barclays is participating in the Sterling Tokenized Deposits pilot phase, aiming to bridge traditional and tokenized deposits [15] - The company is focused on maintaining robust capital ratios and has a light capital redemption profile for the year [11][12] Q&A Session Summary Question: Inorganic Growth Opportunities - Management highlighted recent transactions that align with their strategy, focusing on clear strategic fit, price, and avoiding complicated integrations [21][22][23] Question: Structural Hedge Balances - Management confirmed they are rolling 100% of hedgeable balances and are focused on protecting those through client propositions and technology [25][26] Question: SRT Constraints - Management views SRT as a risk management tool and focuses on maintaining appropriate hedge ratios across the portfolio [26][27] Question: Tier 2 Issuance - Management indicated that while they have a Tier 2 call coming up, they expect limited issuance activity [31][34] Question: Ratings and Upgrades - Management expressed optimism about potential ratings upgrades, emphasizing improved credit profiles and ongoing dialogue with rating agencies [32][35] Question: Private Credit Exposure - Management confirmed a disciplined approach to private credit, focusing on top managers and ensuring valuation rights [54][56]

Banks are not competing with stablecoins on speed alone. They are competing on legal certainty.A tokenized deposit sits on a regulated bank balance sheet. It remains subject to capital requirements, liquidity coverage rules, resolution regimes and — where applicable — deposit insurance. There is no ambiguity about seniority in insolvency. There is no reserve opacity problem. There is no new issuer risk to underwrite.Tokenized deposits do not introduce new money. They repackage existing deposits using distri ...

Core Insights - BNY has launched a tokenized deposit capability on its Digital Assets platform, enabling near-real-time settlement for institutional clients' cash balances on a private blockchain [1][4] - The service initially focuses on collateral and margin workflows, aiming to reduce settlement frictions and support an always-on operating model [5][6] - Other major financial institutions, including BlackRock and Standard Chartered, are also exploring tokenization, indicating a growing trend in the financial industry [7][8] Company Developments - BNY's tokenized deposits create on-chain digital book entries that correspond 1:1 to clients' existing demand deposit claims, recorded on a private, permissioned blockchain [3] - The system allows participating institutions to transfer mirrored balances on-chain in near real-time, facilitating quick responses to margin calls [4][5] - BNY's Chief Product and Innovation Officer emphasized the company's commitment to innovating cash movement in the modern financial system [6] Industry Trends - The financial industry is increasingly focused on tokenization, with BlackRock planning to tokenize over $4.1 trillion in traditional products [7] - The trend towards tokenization has been significantly influenced by the development of Real World Assets (RWA) in 2025, leading to explosive growth in real-world use cases [8] - The announcements from various financial institutions suggest that tokenization technology will continue to be a prominent trend in 2026 [8]

Core Viewpoint - BNY, the world's largest custodian bank, is set to issue digital representations of customer deposits on the blockchain, marking a significant step in enhancing its digital cash capabilities [1] Group 1: Digital Asset Initiatives - BNY's tokenized deposits will serve as digital book entries that clients can withdraw through traditional means, initially focusing on collateral and margin applications [2] - The introduction of tokenized deposits aims to reduce settlement friction and improve liquidity efficiency, showcasing how traditional financial institutions are integrating digital assets into their operations [3] Group 2: Institutional Trust and Scale - BNY has safeguarded $57.8 trillion in assets for clients as of September and manages $2.1 trillion in assets, emphasizing the trusted nature of its banking services [4] - The bank's digital infrastructure will include a tokenized money-market fund in collaboration with Goldman Sachs, further solidifying its position in the digital finance landscape [4] Group 3: Industry Response and Collaboration - The formation of BNY's digital assets unit in 2021 led to the management of private keys and the launch of custody services for Bitcoin and Ethereum [5] - Statements from various crypto-native firms, including Anchorage Digital and Circle, highlight the significance of BNY's move towards tokenized deposits as a milestone for digital cash adoption [6]

Group 1 - Barclays has acquired a stake in Ubyx, a U.S. startup focused on stablecoin settlement, emphasizing the importance of interoperability for digital assets [1] - Ubyx, founded by former Citi executive Tony McLaughlin, aims to create a clearing system for stablecoins and tokenized deposits, allowing deposits from various issuers and currencies into bank and fintech accounts [2] - The startup's goal is to help stablecoins achieve "cash equivalent status" to promote mainstream corporate adoption [2] Group 2 - McLaughlin envisions stablecoins addressing all payment use cases, contingent on seamless on- and off-ramping for banks and fintechs, predicting a "pluralistic market structure" with interconnected issuers and currencies [3] - Ubyx previously raised $10 million in a seed round in July 2025, with investments from notable firms including Galaxy Ventures and Coinbase Ventures [3] - The UK is advancing its stablecoin regulations, following the U.S. GENIUS Act, with proposed rules including caps on holdings for individuals and small businesses, indicating a shift towards practical integration of digital money [4]

Core Insights - Barclays has announced a strategic investment in Ubyx Inc., a US-based clearing system for digital money, including tokenized deposits and regulated stablecoins [1][2] - The investment aims to enhance interoperability in the evolving landscape of tokens, blockchains, and wallets, facilitating seamless interaction for regulated financial institutions [2][3] - Ubyx's mission is to build a global acceptance network for regulated digital money, emphasizing the importance of bank participation for redemption at par value through regulated channels [3] Company Overview - Ubyx aims to promote the ubiquity of tokenized money by connecting multiple issuers with receiving institutions in a shared settlement environment, enabling the redemption of digital money at par and supporting currency uniformity [5] - Barclays envisions being a leading provider in global finance, with diversified business areas including retail, corporate, wealth management, and investment banking [4]

Summary of the Conference Call on Stablecoins in Asia-Pacific Industry Overview - The report focuses on the evolving landscape of stablecoins in the Asia-Pacific region, particularly in light of the GENIUS Act passed in July 2025 and recent stablecoin IPOs in the US [1][2] - Many Asia-Pacific countries are considering the introduction of local currency stablecoins, but the regulatory framework is still in development [1][2] Key Insights - **Regulatory Landscape**: The regulatory environment for stablecoins is rapidly evolving, with countries like Singapore, Australia, and Japan already having frameworks in place for stablecoin issuance [11][20] - **Adoption Potential**: Korea, Singapore, and Hong Kong are identified as having the highest potential for stablecoin adoption due to their familiarity with crypto and high cashless payment rates [3][10] - **Market Size**: The USD-denominated stablecoin market cap is approximately $300 billion, while Asia currency-based stablecoin market cap is only around $49 million, indicating significant room for growth [9] Opportunities and Challenges - **Cross-Border Payments**: Stablecoins present a natural opportunity for cross-border payments, with potential transaction cost reductions of 60-80% compared to traditional systems [29] - **Corporate Interest**: Corporates are beginning to shift their focus towards stablecoins, with some already signing agreements for stablecoin transactions [2][40] - **Financial Institutions' Response**: Local banks are becoming increasingly aware of the risks posed by stablecoins, particularly regarding FX commissions and trade finance earnings [40] Regulatory Developments - **Australia**: The RBA is exploring the role of stablecoins through Project Acadia, focusing on the development of a Central Bank Digital Currency (CBDC) [17] - **Korea**: The Bank of Korea emphasizes the need for traditional banks to lead stablecoin initiatives to ensure monetary policy efficacy [17] - **Hong Kong**: The Stablecoins Ordinance requires a license for stablecoin issuance, with 36 applications received by the HKMA as of September 2025 [17] - **China**: The PBOC maintains a cautious stance towards stablecoins, focusing on the promotion of the digital yuan instead [18] Market Dynamics - **Demographics**: Countries with a higher share of younger populations and foreign workers are expected to drive demand for stablecoins, particularly for cross-border remittances [10][11] - **Technological Adoption**: Advanced digitization in Asia, characterized by a young population of "digital natives," supports higher adoption rates for stablecoins [6] Financial Institutions' Initiatives - Financial institutions are adapting to the changing landscape by exploring partnerships and developing blockchain-based solutions for stablecoin transactions [63] - Examples include POSCO International's collaboration with JPMorgan Kinexys for a blockchain-based global payment system and Mitsubishi Corporation's plans to use JPY-pegged stablecoin for internal payments [45] Conclusion - The stablecoin ecosystem in Asia-Pacific is still in its early stages, but the potential for growth is significant as regulatory frameworks develop and corporates begin to adopt these digital currencies [1][2][9]

Core Viewpoint - Solowin Holdings has been selected as an industry pioneer in the pilot phase of Project Ensemble by the Hong Kong Monetary Authority, focusing on enabling real-value transactions involving tokenized deposits and digital assets [1][4]. Group 1: Company Overview - Solowin Holdings is a leading financial technology firm that bridges traditional and digital assets, focusing on digital currency payments and asset tokenization [6]. - The company operates through its subsidiary, Solomon JFZ (Asia) Holdings Limited, which is licensed by the Hong Kong Securities and Futures Commission [6]. - Solowin aims to establish itself as a global digital asset financial platform, integrating traditional finance with the Web3 ecosystem [6]. Group 2: Project Ensemble and Participation - Solomon JFZ is listed in Annex B of EnsembleTX, which includes other notable participants such as Ant International and Hong Kong Exchanges and Clearing Limited [2]. - The EnsembleTX initiative will facilitate interbank transactions involving tokenized deposits and fund subscriptions through a blockchain-based infrastructure [3]. - The project aims to enhance interoperability, efficiency, and automation in the financial ecosystem, marking a transition to real-value transaction applications in Hong Kong's tokenization landscape [4]. Group 3: Future Prospects - The initial focus of EnsembleTX will be on using tokenized deposits in money market fund transactions and managing liquidity in real-time [4]. - Dr. Haokang Thomas Zhu, Director of Solowin, expressed optimism about the potential of tokenized deposits in driving financial innovation and expanding their applications in fund settlement by 2026 [5].

Core Insights - Solowin Holdings has been selected by the Hong Kong Monetary Authority as an industry pioneer in the pilot phase of Project Ensemble, which focuses on enabling real-value transactions involving tokenized deposits and digital assets [1][4]. Group 1: Project Ensemble - Solomon JFZ will collaborate with other leading institutions to facilitate interbank transactions involving tokenized deposits and fund subscriptions through a blockchain-based infrastructure [3]. - The initiative aims to enhance interoperability, efficiency, and automation across the financial ecosystem, laying a foundation for a tokenized economy [3][4]. - The pilot will initially focus on using tokenized deposits in money market fund transactions and managing liquidity in real-time [4]. Group 2: Company Background - Solowin Holdings is a financial technology firm established in 2016, focusing on bridging traditional and decentralized finance [6]. - The company operates through its licensed subsidiary, Solomon JFZ, and has developed a multi-jurisdictional financial platform that includes stablecoin payments and asset tokenization [6]. - The firm is backed by leading international institutional investors and aims to drive the convergence of traditional finance and the Web3 ecosystem [6].

Partnerships & Expansion - Custodia 和 Vantage 扩大试点项目，建立美国银行的实时代币化存款网络 [1]