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.
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