The Bank of England (BoE) confirmed on 15 October 2025 that proposed caps on individual holdings of sterling-denominated stablecoins, set between £10,000 and £20,000, will remain in place until regulators are assured these digital assets do not present a risk to financial stability. According to Deputy Governor Sarah Breeden, “such outflows could lead to a ‘precipitous drop in credit for businesses and households if the banking system were unable to increase, at scale and at pace, its use of wholesale financing from non-banks.’” (Reuters)
The BoE’s stance on stablecoins is notably stricter than many international peers. The regulator’s main concern is that large-scale movement of bank deposits into stablecoins could disrupt traditional banking and lending channels. A key element of this approach includes the collaborative development of a resolution framework with HM Treasury, aiming to manage potential issuer failures without endangering the broader financial system.
- Stablecoin cap: Proposed limits set at £10,000–£20,000 per individual.
- Consultation process: Public consultation on these limits opens in November 2025.
- Business exemptions: The largest companies may be exempt from the cap.
A full regulatory regime for sterling stablecoins is expected to be drafted by 2026. The Bank clarified, “We expect to remove the limits once we see that the transition no longer threatens the provision of finance to the real economy.” The upcoming public consultation will address both the size of these caps and the broader risk management framework for issuers and holders.
For further reading about UK payment methods, withdrawal regulations and related developments:
