The Bank of England publishes draft and/or finalised rules for “systemic” sterling stablecoins, adjusting earlier proposals that would have limited how much of these tokens investors could hold. Multiple outlets report that the BoE removes or abandons temporary stablecoin holding limits and replaces them with a “temporary issuance guardrail.” Under the new approach, each systemic stablecoin faces an aggregate issuance cap of £40 billion at launch. Reporting also indicates the BoE revises requirements around backing assets and reserve composition, including making it easier for issuers to hold more reserves in government debt, rather than relying as heavily on other asset requirements proposed previously.
Several sources say the updated framework is aimed at preparing for a market launch in 2027, with the guardrail and other measures designed to manage systemic risk from large-scale stablecoin issuance. CoinDesk and others describe related changes that include improved terms for token issuers, such as adjustments to yield conditions tied to how reserves are held. Overall, outlets agree the BoE softens its earlier stance by focusing restrictions on issuance size rather than retail or holder caps.
