The Bank in June dropped proposed temporary limits on how many stablecoins individuals and businesses could hold, replacing them with a temporary 40 billion pound ($54 billion) issuance cap for each systemic stablecoin.
Issuers could hold as much as 70% of their reserves in short-term British government debt, with the remainder kept as central bank deposits.
The Financial Conduct Authority has separately finalized rules for crypto firms and stablecoin issuers, including simplified capital requirements introduced after industry feedback. Firms can apply for authorization from Sept. 30, with the regime scheduled to take effect on Oct. 25, 2027.
The stablecoin market is valued at around $303 billion as of this writing, up from around $200 billion at the beginning of last year, according to DeFiLlama data. The lion’s share of that is currently in the form of U.S.-dollar stablecoins.
Retail investor-sized stablecoin transactions below $250 have risen from $500 million in 2019 to nearly $70 billion last year, according to Visa data that points to growing consumer use.
CoinDesk has reached out to the Treasury for comments but hasn’t heard back at the time of writing.
