Regulation · Regime · United Kingdom · Regulator rule or rulebook · Bank of England
Bank of England regime for sterling-denominated systemic stablecoins
The Bank of England's regime for sterling stablecoins used widely for payments that HM Treasury recognises as systemic. The Bank leads on backing assets, capital, safeguarding and failure planning, jointly with the FCA's conduct rules. After consulting in 2025 it dropped individual holding limits in favour of a temporary £40bn issuance guardrail per coin, and plans to finalise its Code of Practice by the end of 2026.
Consultation closed
Key points
- Systemic issuers may hold up to 70% of backing assets in short-term UK government debt, with the rest as deposits at the Bank.[1]
- The holding limits consulted on in 2025 (£20,000 per coin for individuals, £10m for businesses) will not be introduced.[1]
- A temporary issuance guardrail of £40bn per systemic stablecoin applies, to be reviewed and removed once risks to credit provision are addressed.[1]
- The FCA regulates all UK qualifying stablecoin issuers; on recognition as systemic the Bank becomes jointly responsible and leads on backing assets, capital, safeguarding and failure arrangements.[2]
- Overseas issuers of systemic sterling stablecoins must set up a UK legal entity.[2]
What it covers
StablecoinPaymentsMerchant paymentsProgrammable payments
Timeline
- 10 Nov 2025 · ConsultationConsultation paper on the proposed regime, including holding limits.[3]
- 22 Jun 2026 · ConsultationPolicy statement and draft Code of Practice published; holding limits dropped.[1]
- 22 Sep 2026 · ConsultationFeedback on the draft Code of Practice due.[1]
- Dec 2026 · Final · upcomingBank intends to finalise the Code of Practice.[1]
- 2027 · In force · upcomingRegulated stablecoins expected to operate in the UK.[1]
Instruments
- Bank of England consultation paper: Proposed regulatory regime for sterling-denominated systemic stablecoinsConsultation paper · Consultation closed
- Bank of England and FCA approach to joint regulation of systemic stablecoin issuersGuidance · Final, not yet in force
- Bank of England policy statement and draft Systemic Stablecoin Issuer Code of Practice (June 2026)Policy statement (final rules) · Consultation closed
Deployments operating under it
None recorded with a source yet.
Likely relevant to
| Deployment | Status | Assets | Use cases | Last reviewed |
|---|---|---|---|---|
| Agant GBPA sterling stablecoinNew Agant | Live (limited) | Reviewed 22d ago | ||
| Tokenised GBP (tGBP) sterling stablecoinNew BCP Technologies | Live (limited) | Reviewed 22d ago | ||
| Sterling Fnality Payment System (£FnPS)Updated 7 Nov 2026 Fnality | Pilot | Reviewed today |
Sources
- [1]Bank of England launches policy statement and draft rules on regulating systemic stablecoins — Bank of England, 22 Jun 2026. Accessed 12 Oct 2026.A
- [2]Bank of England and Financial Conduct Authority's approach to joint regulation of systemic stablecoin issuers — Bank of England, 30 Jun 2026. Accessed 12 Oct 2026.A
- [3]Proposed regulatory regime for sterling-denominated systemic stablecoins — Bank of England, 10 Nov 2025. Accessed 12 Oct 2026.A