The Bank of England has introduced an updated regulatory framework for systemically important stablecoins denominated in pounds sterling. The new rules aim to enhance trust in digital assets, ensure the stability of the financial system, and encourage innovation in payments.
This is reported by Business • Media
Key Changes and Exceptions for Businesses
Under the new initiative, the regulator has confirmed the introduction of limits on the ownership of stablecoins: individuals will be able to hold up to £20,000 in systemically important stablecoins, while businesses can hold up to £10 million. At the same time, retail companies, such as supermarkets, and cryptocurrency exchanges serving numerous clients may be exempt from these restrictions. Such exceptions are a response to market participants’ requests and aim to not hinder the industry’s development.
The final regulatory framework for stablecoins is planned to be implemented in 2026. The document also stipulates that issuers of systemic stablecoins must hold 40% of their reserves in interest-free deposits at the Bank of England, with the remainder in short-term government bonds. For those transitioning to systemic status, it is permitted to hold up to 95% of reserves in government bonds, which is intended to support their stability.
Building Trust and Fostering Innovation
Bank of England Governor Andrew Bailey emphasized that the new rules are designed to ensure that digital money has the same level of trust as traditional currencies.
“We want the public to have the same confidence in new forms of money as they do in existing ones. Regulated stablecoins can provide faster, cheaper, and more functional payments both domestically and internationally.”
The Bank of England is also considering the introduction of central bank liquidity mechanisms to support issuers in case of the need to convert assets. Additionally, the regulator aims to create a “multicurrency” system where stablecoins coexist with bank deposits, while central money remains the foundation of the entire financial system.
Deputy Governor for Financial Stability Sarah Breeden highlighted:
“Our goal remains unchanged — to support innovation and strengthen trust in this new form of money. We have carefully listened to feedback and made adjustments to our proposals.”
To ensure effective interaction between stablecoins, tokenized deposits, and central money, the Bank of England will continue its work within the new Retail Payments Infrastructure Board, which is focused on developing infrastructure for modern retail payments in the country.
It is worth noting that the new rules will apply only to British stablecoins defined by the Treasury as systemically important and intended for payments. Other crypto tokens will be regulated by the Financial Conduct Authority.
Riccardo Tordera-Ricci, Director of Policy at The Payments Association, pointed out that while the organization maintains its opposition to the limits, it positively assesses the Bank’s understanding of the importance of exceptions for certain market participants.
Recall that in October 2025, the Bank of England had already considered easing restrictions on holding stablecoins in banks and the possibility of using them in a “sandbox for digital securities” to foster innovation. In November, it was announced that temporary limits for individuals and businesses were being prepared, with potential exceptions for key market players.