The Bank of England has approved a new regime for systemic stablecoins: key changes and forecasts
The Bank of England has officially introduced updated regulatory rules for systemically important stablecoins denominated in pounds sterling. This step marks a significant phase in the integration of digital assets into the UK's financial system. The regulator has revised reserve requirements and set issuance limits, aiming to balance innovation with financial stability.
Relaxation of Collateral Requirements
One of the key changes is the easing of the collateral structure. Initially, it was proposed to place 40% of reserves in non-interest-bearing deposits at the central bank. In the final version, this share has been reduced to 30%. The remaining 70% can be held by issuers in short-term UK government bonds with maturities of up to six months. This decision increases flexibility for market participants while reducing operational costs.
Limits and Liquidity
The regulator has abandoned the idea of using deposits in commercial banks as collateral, citing risks to the financial system in the event of a crisis. Instead of individual limits on stablecoin holdings for citizens and businesses, a general issuance cap of £40 billion per asset has been introduced. This figure is considered a temporary "safeguard"; as the market adapts, the limit is planned to be increased or completely removed.
Issuers are required to ensure the redemption of stablecoins for fiat at par within 24 hours. To support the sector, the Bank of England will launch an emergency liquidity facility in 2027, allowing loans to be obtained against government bonds as collateral.
Political Context and Prospects
The publication of the rules coincided with political instability: Prime Minister Keir Starmer resigned after Labour's defeat in local elections, triggered by economic issues including rising inflation due to energy prices. Andy Burnham may become the new head of government. Despite this, the Bank of England continues its course toward modernization through RWA (real-world assets), as previously announced.
Analytical Commentary: The approval of these rules is a positive signal for the market, demonstrating the UK's readiness to become a leader in stablecoin regulation. Reducing the share of reserves at the central bank to 30% and introducing a temporary limit of £40 billion sets a precedent for other jurisdictions. However, success will depend on the speed of implementing liquidity mechanisms and adapting to macroeconomic challenges.