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BoE stablecoin regulation

Journalist: Hereward Mills, FT Adviser

ended 23. June 2026

The Bank of England has published its policy statement and revised rules on regulating stablecoins. See it in full here. 

These include allowing up to 70 per cent of backing assets to be held in interest-bearing assets and a temporary issuance guardrail initially set at £40bn for each systemic stablecoin. 

The BoE said stablecoins could enable faster, cheaper and more flexible services for users, including cross‑border use cases. 

Advisers - what are your thoughts on the key policy decisions, and on stablecoins in general? 

Best, 

Hereward 

1 responses from the Newspage community

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Editor
Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
Stablecoins could genuinely improve payments: faster transfers, cheaper cross-border transactions and more flexible ways to move money. But “stable” should mean stable when markets are stressed, not just when everything is calm.

The Bank has got the broad balance right. A 70% allowance for interest-bearing assets recognises issuers need a viable business model, while central-bank deposits and the £40bn temporary issuance guardrail are there to stop innovation becoming a financial-stability problem.

For investors, the key distinction matters. A regulated stablecoin may become useful payment infrastructure; it is not automatically a low-risk investment, cash savings account or substitute for proper diversification.

The real test will be redemption. Can people get their money back quickly, at par, during pressure? If the answer is yes, stablecoins can add value. If not, calling them “stable” is just branding.