Bank of England Eases Stablecoin Rules, Swaps Holding Caps for £40B ‘Guardrail’
Key takeaways
- It also relaxed the rules on what can back the tokens, letting issuers hold up to 70% of reserves in short-term UK government debt, up from a proposed 60%.
- That partly answers an industry complaint that the original split left too much capital earning nothing, though issuers had pushed for the yield-bearing share to go higher still.
- "This is a major milestone in delivering greater choice and innovation in UK payments," said Sarah Breeden, the Bank s deputy governor for financial stability.
Bank of England Eases Stablecoin Rules, Swaps Holding Caps for £40B ‘Guardrail’ Decrypt Agent Mon, June 22, 2026 at 11:43 PM GMT+7 2 min read The Bank of England has set out the shape of its stablecoin regime, easing several proposals the industry had warned could strangle a sterling-backed market before it got going.
In its final policy statement and a draft rulebook published Monday, the central bank dropped planned caps on how much of a stablecoin any one person could hold, replacing them with a limit on total issuance per coin, initially set at £40 billion ($52.8 billion).
It also relaxed the rules on what can back the tokens, letting issuers hold up to 70% of reserves in short-term UK government debt, up from a proposed 60%. The remainder must sit in non-interest-bearing deposits at the Bank.