Key Takeaways:
- The BoE’s stablecoin consultation runs until February 2026.
- Final regulations will arrive in the second half of 2026.
- Issuers must back 40% of liabilities with BoE deposits.
- Holding caps: £20,000 for individuals, £10 million for businesses.
- The BoE remains cautious on self-custody and public blockchains.
Bank of England Opens Stablecoin Consultation Ahead of 2026 Rules
The Bank of England (BoE) has taken a major step toward regulating stablecoins by launching a consultation on a proposed framework that will govern sterling-denominated digital tokens. The move marks a pivotal moment for the UK’s crypto and payments landscape, as the BoE seeks to balance innovation with financial stability.
Also Read: How Aptos Quietly Outpaced Rivals in Stablecoin Growth
Clear Rules for “Systemic” Stablecoins
The consultation, published Monday, outlines how the BoE plans to oversee “systemic stablecoins” — those widely used for payments that could impact the broader economy. The framework proposes that issuers must hold at least 40% of their liabilities as deposits with the BoE and up to 60% in short-term UK government debt, ensuring robust backing.
Issuers deemed systemically important could initially hold up to 95% of reserves in government debt before scaling down to 60% as they grow. This measure, the BoE argues, will mitigate systemic risks while preserving viability for issuers.
Limits, Oversight, and Accountability
Under the draft rules, individual holdings would be capped at £20,000 per stablecoin, while businesses could hold up to £10 million, with possible exemptions for operational needs. The BoE also emphasized that His Majesty’s Treasury will decide which stablecoin issuers and payment systems qualify as “systemic,” placing them under the central bank’s supervision.
The consultation runs until February 10, 2026, with final regulations expected in the second half of the year — signaling that the UK intends to move swiftly yet deliberately toward a mature stablecoin regime.
Monitoring Wallets and Public Blockchains
The BoE also raised concerns about self-custodial wallets and public permissionless blockchains, warning that they pose challenges for accountability, operational resilience, and enforcing holding limits. The bank reaffirmed that unhosted wallets could hinder payouts in case of issuer failure and will remain under close observation.
Also Read: What Is a Public Blockchain?
A Defining Step Toward Stablecoin Clarity
While the proposed framework does not cover non-GBP stablecoins like USDT or USDC, it sets the stage for future oversight as adoption expands. The BoE’s move signals a clear intent: to build a safe, transparent foundation for digital money in the UK’s payment ecosystem.
