Code & Chain · Signal Desk

Bank of England Declares Itself 'the Bank for Stablecoins,' Sets £4 Billion Issuance Cap and 70% Short-Dated UK Gilt Reserve Requirement

Original sourceCrypto Briefing

Summary

The Bank of England signaled it will act as 'the bank for stablecoins,' linking central bank support with pound-denominated tokens. The key policy point is a June 22, 2026 relaxation of prior restrictions: replacing the previous per-person holding cap with a £4 billion issuance cap per stablecoin (…

Key points

  • The issuance cap and reserve composition for pound stablecoins will directly determine issuers' balance sheet design and liquidity risk.
  • The central bank personally serving as backstop for stablecoins effectively brings pound stablecoins into the formal monetary system, with strong demonstration effects for global regulation.
  • Firms intending to issue pound stablecoins must plan around the 70/30 reserve structure and £4 billion cap, and can only finalize business models after the final rules expected by end-2026.

Editorial note

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