Starting June 27, 2025, Barclays will prohibit customers from using its credit cards, including Barclaycard, for cryptocurrency transactions. This decision, announced on June 25, 2025, cites the high risk of over-indebtedness due to crypto’s volatility and lack of regulatory consumer protections. This move aligns with Barclays’ historical caution, as major UK banks like HSBC and Lloyds have also restricted crypto transactions due to fraud and money laundering concerns.
Significant Exposure to Bitcoin ETFs (February 2025)
Barclays disclosed a $136.8 million investment in BlackRock’s iShares Bitcoin Trust (IBIT) through its 13F filing with the SEC on February 13, 2025. This marked a significant step in Barclays’ crypto engagement, as the bank does not directly hold Bitcoin but gains exposure through ETFs, a safer avenue for institutional investors. The move reflects a broader trend of institutional adoption, spurred by a pro-crypto U.S. political climate following Donald Trump’s November 2024 election win. For comparison, Goldman Sachs also doubled its Bitcoin ETF exposure in Q4 2024. This development suggests Barclays is cautiously embracing crypto’s financial potential despite its transaction restrictions.
End of Coinbase Partnership (March 2025)
Barclays terminated its banking relationship with Coinbase, a major U.S. crypto exchange, as reported on March 26, 2025. This ended a landmark 2018 partnership that facilitated faster GBP transactions for Coinbase users. The decision, possibly driven by Barclays’ reduced risk appetite for crypto, aligns with its broader concerns about regulatory compliance. Coinbase is now partnering with ClearBank to restore Faster Payments System (FPS) access by Q3 2025. Barclays reportedly continues working with Circle indicating selective crypto engagement.
Past Involvement
Barclays has a history of measured crypto involvement:
- In 2022, it explored a multimillion-dollar stake in Copper, a crypto custody firm, though Copper later withdrew its UK FCA license application in December 2024 due to stringent regulations.
- In May 2022, Barclays invested in Elwood Technologies, a crypto platform, alongside Goldman Sachs, showing early institutional interest.
- Barclays’ analysts have also studied crypto trends, noting in February 2025 that Bitcoin’s price surge (past $100,000) hasn’t led to increased crypto job postings, suggesting a disconnect between market enthusiasm and industry hiring.
Broader Implications
Barclays’ recent actions reflect a dual strategy – restricting retail crypto access to mitigate risks while selectively investing in crypto assets like Bitcoin ETFs for institutional gain. The credit card ban may limit consumer crypto purchases, potentially pushing users to alternative payment methods or platforms. Meanwhile, the $136.8 million IBIT investment signals confidence in Bitcoin’s long-term value, especially amid U.S. regulatory shifts and the Federal Reserve’s removal of “reputational risk” from bank oversight, which could ease crypto banking restrictions.
Analysts view Barclays’ ETF investment as a pragmatic entry into crypto, leveraging regulated products like IBIT to avoid direct exposure risks. However, the Coinbase breakup and credit card ban suggest regulatory pressures still dominate.
Barclays’ crypto journey seems like balancing act: a $136.8 million Bitcoin ETF investment shows institutional optimism, while the Coinbase split and credit card ban reflect regulatory caution. These moves highlight the evolving dance between traditional finance and crypto, with Barclays navigating risks and opportunities carefully. Keep an eye on official announcements for further clarity on their strategy.
FAQs
Q: Why did Barclays invest in Bitcoin ETFs?
A: To gain exposure to Bitcoin’s growth without direct ownership, leveraging regulated ETFs amid a pro-crypto U.S. policy shift.
Q: Why did Barclays end its Coinbase partnership?
A: Likely due to reduced risk appetite for crypto, driven by regulatory and fraud concerns, though it continues working with firms like Circle.
Q: How does the credit card ban affect customers?
A: From June 27, 2025, customers cannot use Barclays credit cards for crypto purchases, potentially limiting access to exchanges.
Q: Is Barclays’ crypto strategy common among banks?
A: Yes, banks like Goldman Sachs also invest in Bitcoin ETFs, while UK banks like HSBC restrict retail crypto transactions due to regulatory risks.
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About the Author: Aditi Sharma
