stabilcoins

#Write2Earn
British pound stablecoins capped to $53B ceiling as Bank of England sets out stablecoin rules.

The Bank of England has removed the biggest usability objection from its sterling stablecoin plan, but it has kept a ceiling on how large any single systemic pound token can become.

In a June 22 policy statement and draft Code of Practice, the central bank removed proposed holding limits for individuals and businesses, raised the share of backing assets that may be held in interest-bearing securities, and replaced wallet-level caps with a temporary £40 billion issuance guardrail for each systemic sterling stablecoin product.

That turns the UK debate to scaling. A token that no longer has to police ordinary business balances is more plausible as a payments infrastructure, but a successful issuer would still be rationed before it reaches the market cap of the largest dollar tokens.

The result is a different rationing model.

The UK is paving the way for regulated pound tokens to operate from 2027, while reserving the right to slow their growth until the Bank is satisfied that stablecoins will not drain deposits from the banking system quickly enough to undermine access to credit.

From wallet caps to a product ceiling
The Bank's draft rules consultation closes on Sept. 22, 2026, with the Code of Practice intended to be finalized by the end of the year. Regulated stablecoins are expected to operate in the UK from 2027.

Under the November 2025 proposal, the Bank had considered temporary per-coin holding limits of £20,000 for individuals and £10 million for businesses.

It also proposed a reserve mix that would have allowed up to 60% of backing assets to be in short-term UK government debt and required at least 40% to be in unremunerated Bank deposits.

The new policy statement says those user-level limits will not be implemented. Instead, each systemic stablecoin product will initially be subject to a £40 billion issuance maximum.#Stabilcoins