UK Sets 2026 Deadline for Stablecoin Oversight Under BoE Framework

• BoE announces new rules to bring stablecoins under close UK regulatory scrutin
• Issuers would be required to have 40% BoE deposits and 60% UK sovereign bonds for liquidity.
• Public comment is open through Feb. 10, 2026, as Britain seeks stability in digital money.

The Bank of England has moved a step closer to integrating stablecoins into the standard regulating procedures of the regulators and published an outline of how the digital assets market could be controlled. BoE released a consultation article and draft regulation statement on new regulations relevant to widespread use of sterling-denominated stablecoins in payments. 

Unregulated these tokens would be a danger to the financial stability of Britain it warned. It is a major shift on the part of the U.K. towards digital money.

BoE Targets Systemic Stablecoins in New Oversight Plan

The plan aims at the systemic stablecoins- those that are commonly applied in real-life transactions. According to the Bank of England, such assets when not well managed would contribute to risks in the entire financial system. The aim of the framework is that stablecoins remain a point of strength and credibility regardless of the setting and develop their robust framework.

Also Read: Stablecoin Breakthrough: 3 Massive Banks Unite for Payment Innovation

The issuers would be required under the plan to maintain at least 40 per cent of their liabilities in the form of non-interest bearing deposits at the Bank of England. The remaining 60pc can be invested in the short-term debts issued by the UK government. 

The consultation also suggests the limitations on the number of holdings that can be owned by individual people and companies. Each individual participant was allowed to have up to 20,000 pounds sterling in tokens (equivalent to $26,300). Companies were allowed to own up to £10 million ($13.2 million). 

Source: BoE

BoE Sets Scaled Oversight for Major Stablecoin Issuers

The issuers would be required to impose such limits on a per stablecoin basis. The Bank of England also indicated that the measures would reduce systemic exposure in addition to maintaining operational flexibility of those businesses that are operating within the law. T

The bank offered a progressive support in reserve of issuers that it considered to be systemically large. Initially such issuers could have had up to 95% of their assets in government securities in the UK. They would drop to 60% of the market at a particular size to create the right risk and stability ratio.

The Bank of England announced that the payment systems that can be considered systemically important will be decided by his Majesty Treasury. When categorized, they will be placed under direct supervision of the central bank. 

The proposal will be received until February 10, 2026. The bank intends to have the rules realised in the second half of the same year. The push shows the determinedness by the U.K. to control digital money without stifling innovation.

Also Read: Stablecoin Initiative Backed by Japan’s FSA and Major Banks Gains Traction