The BoE is consulting on how it proposes to regulate sterling-denominated systemic stablecoins. It proposes:
- to allow issuers to hold up to 60% of backing assets in short-term UK government debt and for the other 40% provide them with unremunerated accounts at the BoE. Those issues that are considered systemic at launch will be able to hold up to 95% of backing assets in short-term UK government debt. The BoE is also considering central bank liquidity requirements to help in times of stress; and
- temporary holding limits of £20,000 per coin for individuals and £10m for businesses, and would remove these limits once the transition no longer poses risks to finance provision for the real economy – and it is also consulting on an approach to quantifying those risks.
The consultation closes on 10 February 2026. The BoE and FCA will publish a joint document in 2026 setting out how the rules for systemic and non-systemic coin issuers will apply in practice and how issuers may transition between categories, and then the BoE will consult on and finalise Codes of Practice later in 2026.