European banks set for €30bn boost to interest income; Barclays buys stake in stablecoin settlement network UBYX
European banks anticipate a €30bn income boost, while Barclays invests in UBYX, a stablecoin settlement network.Summary
European banks are projected to see a significant increase in net interest income, estimated at around €30 billion over the next two years (2026-2027), as loan growth and hedging strategies counteract the effects of declining central bank policy rates. UBS analysts predict a 3% rise in 2026 and a 4.5% rise in 2027, bringing total net interest income from €371bn to €399bn. This follows a limited gain of approximately €2bn expected in 2025.
In a separate development, Barclays has taken a stake in Ubyx, a US-based stablecoin settlement group, marking its first investment in the digital asset space. Ubyx operates a clearing system for various stablecoins, and Barclays aims to develop “tokenised money within the regulatory perimeter” through this partnership. This move aligns with renewed interest in blockchain-based payments among banks.
Additionally, Dutch fintech Bunq has reapplied for a US banking license, after withdrawing a previous attempt due to regulatory challenges, and Revolut is exploring the acquisition of Turkish digital bank FUPS to enter the Turkish market. These moves demonstrate continued ambition and expansion efforts within the European fintech sector.
(Source：The Banker)