Qualifying stablecoins
FCAThe FCA leads on UK qualifying stablecoin issuance and custody, including backing, redemption, safeguarding and disclosure standards.
UK rules · stablecoins
Stablecoins are becoming infrastructure.
Last updated
The UK is building separate but coordinated regimes for qualifying stablecoins and systemic payment stablecoins. Here is what has actually been proposed—and what remains unsettled.
70%
Up to short-term UK government debt for systemic issuers
£40bn
Temporary issuance guardrail per systemic product
22 Sep
Bank consultation closes · 2026
Who regulates what
One market, two regulatory roles.
Systemic payment stablecoins
Bank + FCAWhere HM Treasury recognises a payment system as systemic, the Bank of England leads on financial stability while the FCA retains conduct responsibilities.
Overseas stablecoins
DependsA widely used dollar token is not automatically a UK-regulated stablecoin. Treatment depends on the issuer, service and how the token is offered or used in the UK.
The systemic model
The Bank's June 2026 draft framework would generally permit systemic sterling stablecoin issuers to hold up to 70% of backing assets in short-term UK government debt, with the balance at the Bank of England. A temporary £40 billion per-product issuance guardrail is proposed during the transition.
What it does not mean
Stable does not mean risk-free. Tokens can depeg, redemption can fail, issuers and custodians can fail, and overseas tokens may sit outside this UK issuance framework. Check the issuer and legal terms, not only the ticker.
What happens next
Consultation now. Finalisation, then 2027 operation.
The Bank consultation closes on 22 September 2026. It intends to finalise the systemic framework by the end of 2026, with operation aligned to the broader 2027 regime. Details may change before final rules.