United Kingdom · Cointelegraph
Bank of England eases stablecoin rules, ships 40B pound issuance cap
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The Bank of England published draft rules for systemic stablecoins, easing reserve requirements and replacing holding limits with a temporary 40 billion pound issuance cap.
Key facts
- The issuance guardrail replaces the holding limits proposed in the BoE’s November 2025 consultation, which would have limited individuals to 20,000 pounds per stablecoin and businesses to 10 million
- The publication moves the UK closer to launching a dedicated regulatory framework for stablecoins, with the BoE aiming to finalize its rulebook by the end of 2026 ahead of a planned 2027 rollout
- The Bank of England published draft rules for systemic stablecoins, easing reserve requirements and replacing holding limits with a temporary 40 billion pound issuance cap
- Under the policy statement, systemic stablecoin issuers will be allowed to hold up to 70% of reserves in interest-bearing government debt, up from 60% under the previous proposal
Summary
The Bank of England (BoE) published a policy statement and draft rules for systemic stablecoins on Monday, outlining how regulated pound-backed stablecoins would operate in the United Kingdom. The BoE defines systemic stablecoins as those that are widely used in payments and may pose risks to the UK’s financial stability. Under the policy statement, systemic stablecoin issuers will be allowed to hold up to 70% of reserves in interest-bearing government debt, up from 60% under the previous proposal. “This guardrail will be reviewed regularly and removed once risks to credit provision have been addressed,” the central bank said published on Monday.