The Bank of England has launched a formal consultation on regulating pound-denominated stablecoins that are considered “systemically important”. The move, announced in a consultation paper published on 10 November 2025, outlines proposed requirements for stablecoin issuers and custodians whose operations could impact the UK’s financial stability.
Under the proposals, systemic stablecoin issuers would fall directly under Bank of England (BoE) supervision. Key requirements include significant capital reserves, mandatory backing of coins with short-term UK government debt (gilts), and the potential for access to emergency liquidity support as a ‘lender-of-last-resort’. Smaller stablecoin providers will remain under Financial Conduct Authority (FCA) oversight.
The consultation follows feedback from the Bank’s November 2023 Discussion Paper and is closely aligned with the National Payments Vision and strategy set by the Payments Vision Delivery Committee.
- Backing Assets Limits: Systemic issuers can hold up to 60% of stablecoin reserves in short-term UK government debt; those designated systemic at launch may hold up to 95%.
- Temporary Holding Caps: Proposals include interim limits of £20,000 per stablecoin for individuals and £10 million for businesses.
- Implementation: The rules are expected to be phased in from 2026, with the consultation open until 10 February 2026.
The Bank of England states: “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.”
| Area | Key Proposal | Oversight |
|---|---|---|
| Systemic Stablecoin Issuers | High capital and reserve requirements; direct BoE supervision | Bank of England |
| Non-Systemic Stablecoin Issuers | Existing regulatory requirements | FCA |
| Holding Limits | £20,000 (individuals), £10m (businesses) | Proposed, to be reviewed |
These changes are intended to provide clear guidance for industry stakeholders and reinforce consumer protections as stablecoins become more integrated into the UK payment system. For further details, see the official consultation announcement.
Related resources for UK players and industry professionals:
