The Bank of England published its final policy statement and draft rules for systemic stablecoins on June 22, 2026, removing personal and business holding limits in a major change from earlier proposals. The new framework places the main restriction on scale instead: each systemic stablecoin would face a total issuance cap of £40 billion, or about $52.8 billion.
Holding caps are gone, supply cap becomes the main control
Under the previous approach, individuals would have been limited to £20,000 in stablecoin holdings, while businesses faced a ceiling of £10 million. Industry participants argued those thresholds were too restrictive for real adoption. The revised model removes both limits, allowing individuals and companies to hold as much as they want, while keeping a cap on the total outstanding supply of each stablecoin.
The Bank of England does not present that cap as permanent. It said the limit will be reviewed and could eventually be removed once regulators have a better grasp of the risks tied to systemic stablecoins.
1:1 backing stays in place, but reserve composition is looser
Issuers must still fully back every token in circulation on a 1:1 basis. What changed is the structure of those reserves. Roughly 70% of backing assets would be held in short-term UK government debt, which generates interest. Another 30% would sit as non-interest-bearing deposits at the Bank of England. On top of that, issuers would maintain an extra 5% reserve buffer for operational flexibility.
That setup is less restrictive than earlier ideas that leaned toward much larger non-remunerated portions, or even a requirement to keep all reserves parked at the central bank. The draft gives issuers more room to manage the economics of operating a sterling stablecoin.
Holders still receive no yield as regulators guard bank deposit outflows
The softer framework does not change one point for users: stablecoin holders will not earn interest. Regulators want to avoid direct competition between stablecoins and traditional bank deposits.
Financial stability remains central to the Bank’s approach. A rapid shift of money from deposits into stablecoins could reduce bank lending capacity and increase run risk in stressed conditions. That concern helps explain why the BoE eased holding restrictions while keeping a supply ceiling and conservative reserve requirements in place.
UK moves to stay competitive as final rules approach
The shift also reflects pressure from overseas markets. The US already has dominant stablecoins such as USDC and USDT, while the EU is advancing under its MiCA framework. Members of the House of Lords had warned that overly strict rules could push GBP stablecoin activity offshore. Deputy Governor Sarah Breeden had also said earlier proposals may have been too conservative.
Under the current timeline, final rules are expected by the end of 2026, with systemic stablecoin launches possibly arriving around 2027. Oversight will be shared by the Bank of England and the FCA for systemic issuers, while smaller non-systemic stablecoins will fall under a lighter FCA-only regime. The next milestone is the release of the Codes of Practice later in 2026, along with the first issuer applications under the new framework.