The Bank of England has drawn a sharper line on how it sees stablecoins. Speaking at the FT Digital Asset Summit, BoE executive director Sasha Mills said the central bank views stablecoins as “a new form of money” and said they must be as robust as any other form of money. She also said the UK will open applications for systemic stablecoins before the end of this year.
The BoE is not choosing between tokenized deposits and stablecoins
Mills said the Bank is not “picking winners” in the debate between tokenized deposits and stablecoins. In her view, it is still too early to tell which use cases fit which form of new money. The remark signals that UK regulators are not treating stablecoins only as crypto assets or payment tools, but are placing them inside a framework closer to monetary regulation.
She described systemic stablecoins as those used widely for payments and large enough to pose risks to UK financial stability. Tokens in that category would be supervised directly by the Bank of England. Mills said the application process will open by year-end, giving prospective issuers a formal route to seek approval.
FCA says pound-backed stablecoins still have a role
At the same event, FCA director of payments and digital assets Matthew Long said not every stablecoin would fall under the BoE. Stablecoins that do not reach systemic scale would be regulated by the FCA. He said there is still room for sterling-denominated stablecoins.
Long added that the FCA has built a stablecoin regime centered on credibility and redeemability, and said the regulator is supporting firms that meet the standards set out in its rules. His comments also hinted that digital bank Revolut could issue its own stablecoin before July this year, which would make it one of the earlier products launched under the UK framework.
Dollar tokens still dominate the global market
Mills also pointed to a market concentration issue: 99% of global stablecoins are denominated in US dollars. She said most of those tokens were issued before passage of the US GENIUS Act and do not comply with that law. According to her remarks, dollar stablecoin issuers are now launching new versions designed to align, or expected to align, with the legislation.
She said the UK’s regulatory timetable is moving in step with the US, but argued that the British framework is seen as stronger because stablecoins are regulated as money. That stance sets out a more formal policy direction for how the UK intends to handle stablecoins inside its financial system.