The Bank of England has softened its proposals for sterling stablecoins, swapping individual holding limits for a temporary £40 billion issuance cap per coin. It also raised the share of reserves that can sit in government debt, and plans to finish the full framework by the end of 2026.
The Bank of England says it wants to be the bank behind stablecoins. A Bank of England deputy said the central bank will serve as "the banker to the stablecoin".
The comment follows a June 22, 2026 policy statement that softens several earlier proposals for sterling-denominated stablecoins. The bank made the changes after what it described as extensive feedback from industry.
A cap on coins replaces limits on holders
The policy statement arrived alongside a draft Code of Practice for stablecoin issuers. Each stablecoin will face a temporary £40 billion issuance guardrail.
That guardrail replaces limits on how much any individual could hold. Under the earlier approach, the restriction landed on users. Under the new one, it lands on the size of each coin.
Reserve rules shift toward government debt
The bank also changed the reserve mix. It raised the share of reserves that can sit in short-term UK government debt from 60% to 70%, and the remaining 30% can be held as deposits at the central bank.
Deputy Governor Sarah Breeden has framed the bank's goal around the balance between the two. She has emphasized a framework that guarantees prompt redemption and strong protections for stablecoin users, while making room for central bank support.
Full rules due by end of 2026
None of this is live yet. The bank plans to finish implementing the full framework by the end of 2026, and stablecoin operations under the regime are slated to begin from 2027.
The draft Code of Practice is still a draft, so issuers will want the final version before committing capital. The announcements do not name any specific stablecoin projects.
Source: Crypto Briefing
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