Systemic Stablecoins & the UK Regulatory Framework

Introduction

With regards to systemic stablecoins, the Bank of England (BoE) and the Financial Conduct Authority (FCA) have been publishing a two-tier UK regulatory framework for stablecoin issuance.

Non-systemic UK-issued qualifying stablecoins sit within the FCA's regime, while stablecoins recognised by HM Treasury as systemically important move into joint regulation by the FCA and the BoE under powers derived from the Banking Act 2009, as amended by the Financial Services and Markets Act 2023. On 22 June 2026, the BoE published its policy statement setting out final policy positions for sterling-denominated systemic stablecoin issuers, alongside a consultation on a draft Code of Practice (‘CoP’), marking in places a departure from the approach set out in its original November 2025 consultation.

The BoE's finalised policy makes several material changes compared to its initial proposals, such as a revised 70/30 backing asset split between short-dated UK government debt and unremunerated central bank deposits (up from a proposed 60/40 split), the removal of individual and business holding limits in favour of a temporary £40 billion issuance ‘guardrail’ per systemic stablecoin and a prohibition on the payment of interest to coinholders.

This webinar will consider the practical implications of the new regime, how it interacts with the FCA's parallel non-systemic stablecoin rules and how firms should prepare for a phased implementation running through 2027, equipping viewers with an understanding of the regulatory framework and practical challenges.

What you will learn

This webinar will cover the following:

• The two-tier structure of the regime, including the distinction between non-systemic qualifying stablecoins and systemic stablecoins
• The transition process for firms moving from FCA-only supervision to joint FCA/BoE regulation as they scale
• Key features of the BoE's finalised policy statement and draft Code of Practice, such as backing assets and safeguarding, capital and reserves, issuance and redemption
• Timeline for finalisation and implementation
• Practical implications and next steps