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Bank of England to Launch Stablecoin Regulation with £20K Holding Cap

Thu Nov 06 2025

The Bank of England will publish its stablecoin framework on November 10, introducing £20K caps and dual-tier oversight to make the UK a global leader in regulated digital finance.

Bank of England to Unveil Stablecoin Regulatory Framework on November 10

UK prepares dual-tier rules for “systemic” and “non-systemic” stablecoins with £20K caps, positioning London as a global hub for regulated digital money.

⚡ Quick Facts

📅 Launch date: November 10, 2025
💷 Holding caps: £20,000 (individuals) / £10 million (businesses)
🏦 Supervisors: Bank of England & Financial Conduct Authority (FCA)
🌐 Goal: Make the UK a leader in regulated digital finance

🇬🇧 A Regulatory Milestone for Digital Money

The Bank of England (BOE) is set to publish its long-awaited stablecoin regulatory framework on November 10, marking a decisive step toward integrating digital assets into the UK’s financial system.

Deputy Governor Sarah Breeden confirmed that the new regime will be “up and running just as quickly as the U.S.,” signaling the UK’s ambition to match — and possibly surpass — America’s progress in digital asset regulation.

“Our aim is to ensure that the UK’s regime is operational just as quickly as the U.S.,” — Sarah Breeden, Deputy Governor, Bank of England

The BOE’s dual-tier framework will distinguish between “systemic” and “non-systemic” stablecoins — applying bank-like safeguards to the former while allowing flexibility for smaller, innovative issuers.

⚙️ How the Framework Works

Systemic stablecoins — those with large user bases or integration into payment infrastructure — will face:

Capital and liquidity requirements similar to commercial banks;
Redemption guarantees;
Oversight by the Bank of England.

Non-systemic stablecoins, typically used for trading or fintech experiments, will fall under the FCA, benefiting from lighter oversight to encourage innovation.

To prevent liquidity shocks, the BOE will impose temporary holding caps:

£20,000 per individual
£10 million per corporation

These limits aim to protect deposits from rapid flight into digital assets during early adoption phases.

🏛️ London’s Bid to Lead in Digital Finance

The framework reflects the UK’s broader ambition to become a global crypto-finance hub. It coincides with a string of government initiatives — from digital gilts under the DIGIT project to a Digital Markets Champion coordinating blockchain integration across wholesale finance.

Economic Secretary Lucy Rigby also announced the Dematerialisation Market Action Taskforce, tasked with replacing paper-based share certificates with blockchain-based systems — further aligning traditional markets with tokenization efforts.

💰 Enforcement and Oversight Tighten

The UK’s regulatory expansion isn’t stopping at innovation. The HMRC recently issued 65,000 “nudge letters” to crypto investors suspected of underreporting income — a 134% increase year-over-year. This signals the government’s intent to synchronize tax enforcement with blockchain transparency.

Meanwhile, analysts expect the BOE’s framework to attract fintechs and institutions looking to issue pound-pegged stablecoins under a clear, regulated model.

🪙 From Policy to Tokenization

The UK’s roadmap for a tokenized financial system is already taking shape:

2026: Pilot issuance of blockchain-based digital gilts under the DIGIT framework
2027: GBP-denominated stablecoins integrated into retail payment apps
2028: Tokenized deposits embedded within UK’s financial infrastructure

If implemented smoothly, this dual-tier model could make the UK a benchmark jurisdiction for balancing innovation with macroprudential control — a middle ground between the U.S. and the EU’s MiCA approach.