Bank of England Publishes Stablecoin Rules, Targets 2027 Launch

The Bank of England published a policy statement and draft rules for systemic stablecoins on Monday, setting out how regulated British pound-backed stablecoins would operate in the United Kingdom. It defines systemic stablecoins as tokens widely used in payments that may pose risks to the UK’s financial stability, and HM Treasury will determine whether a token falls within the systemic regime.

The BoE aims to finalise its rulebook by the end of 2026 ahead of a planned 2027 rollout. Under the proposal, systemic issuers may hold up to 70% of reserves in interest-bearing government debt, up from 60% under the previous plan, and the proposed holding limits have been replaced with a temporary £40 billion issuance cap.

'This guardrail will be reviewed regularly and removed once risks to credit provision have been addressed,' the central bank said. Industry figures welcomed the shift but flagged remaining questions.

United Kingdom

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