BoE Opens Review on Pound-Linked Stablecoin Rules

Bank of England Opens Review on Pound-Linked Stablecoin Rules

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 10, 2025

Key Takeaways

The Bank of England has begun a consultation to set clear rules for pound-based stablecoins, with final regulations due in 2026;
Issuers must hold at least 40% of their liabilities as deposits with the Bank and the rest in short-term UK government bonds;
The plan caps individual holdings at £20,000 per token and £10 million for businesses, with feedback open until February 2026.

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The Bank of England has started a public review on how to regulate stablecoins tied to the British pound.

The goal is to create clear rules for stablecoins that could be used for everyday payments and business transactions. The central bank plans to confirm the final rules in the second half of 2026.

The proposal focuses on "systemic" stablecoins, those expected to be used enough to affect the UK’s financial system.

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His Majesty’s Treasury would decide which companies or systems fall under this category, and once identified, they would be supervised by the Bank of England.

Stablecoin issuers would need to keep strong financial backing. At least 40% of a token’s value must be held as deposits with the Bank of England, while the rest could be invested in short-term UK government bonds.

For firms considered systemically important, the central bank would allow up to 95% of backing assets in government debt during early growth, but this share would later drop to 60% as the digital asset becomes more established.

The consultation also suggests setting limits on the amount of stablecoin any person or business can hold. Individuals would be limited to £20,000 per token, while companies could hold up to £10 million.

The Bank of England noted that companies might be granted exceptions if they need higher limits for normal operations. The consultation will remain open for feedback until 10 February 2026.

Recently, the Bank of England has been working to introduce stablecoin regulations on a similar timeline to the United States. What did Deputy Governor Sarah Breeden say? Read the full story.