The Bank of England has published a consultation paper on 10 November 2025 outlining regulatory proposals for systemic sterling-based stablecoins. This marks a significant advance in the development of the UK’s stablecoin framework, with the regime shaped by feedback from the November 2023 Discussion Paper and aligned with both the National Payments Vision and the Payments Vision Delivery Committee’s strategy.
Key measures include requirements for systemic stablecoin issuers to maintain up to 60% of their backing assets in short-term UK government debt. The Bank further proposes temporary holding limits of £20,000 per coin for individual consumers and £10 million per coin for businesses. The new rules would also permit issuers access to emergency central bank lending if needed, aiming to enhance financial stability while supporting market innovation.
These proposals are intended to complement the Financial Conduct Authority’s (FCA) oversight of non-systemic stablecoins, creating a comprehensive two-tier regulatory approach. The Bank of England is accepting feedback on the consultation until 10 February 2026 (source).
“Today’s proposals mark a pivotal step towards implementing the UK’s stablecoin regime next year. Our objective remains to support innovation and build trust in this emerging form of money. We’ve listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England. These proposals are fit for a future where stablecoins play a meaningful role in payments, giving the industry the clarity it needs to plan with confidence.”
The UK’s approach aims to provide clarity for both issuers and users, with safeguards designed to protect consumers, ensure liquidity, and maintain financial stability as digital assets gain prominence in the payments sector.
| Key Proposal | Details | More Information |
|---|---|---|
| Backing Asset Requirements | Up to 60% in short-term UK government debt | Stablecoin rules overview |
| Temporary Holding Limits | £20,000 (individuals), £10m (businesses) | Common withdrawal issues |
| Emergency Lending | Access to Bank of England facilities for issuers | Fast payouts guide |
