The Bank of England has replaced proposed limits on individual and corporate stablecoin holdings with a temporary £40 billion issuance guardrail per coin. The move also allows issuers to hold more reserves in government debt while preparing for a 2027 launch of regulated stablecoins.
The central bank abandoned plans for a £20,000 cap on individual holdings and a £10 million limit on corporations. Instead it introduced an aggregate cap of £40 billion on the total circulation of any single systemic stablecoin.
Issuers must now keep at least 30 percent of reserves in non-interest-bearing central bank deposits. They can place up to 70 percent in short-term UK government debt with maturities under six months.
The Bank said it will continue to ban direct interest payments to stablecoin holders but will permit activity-based rewards. The changes follow industry feedback and a report from a House of Lords committee.
The framework is intended to protect the UK credit system while supporting innovation ahead of full crypto rules in 2027.
