Understanding Systemic Stablecoins & the UK Regulatory Framework

Introduction

With the ever-increasing presence and utilisation of non-traditional and other alternative non-sovereign backed monetary systems such as bit, stablecoins and others, an understanding of the basics of these monetary mechanisms, including their relevant regulatory works, is essential for anyone working in or advising on today’s finance industry.

This introductory level virtual classroom seminar will focus on proving such basic details move on to the application thereof. Covering both past, current and predicated developments. The last, including short, medium and long term.

This course will aim to provide its participants with the necessary background, knowledge and tools so that they can: properly understand, advised on and/or utilise such mechanisms in transactions; avoid issues through proactive steps and analysis; propose and implement solutions and help to ensure avoidance most of the common and costly problems before they arise.

This course will also help you to plan for problems and avoid and mitigate them as a direct result of both direct and indirect actions and events, to help be at least one step ahead all the way and hence to help ensure a successful stablecoin transactions for all.

What you will learn

This live and interactive course will cover the following:

• Details of the UK Two-Tier Stablecoin Architecture
• Definition and most common examples of stablecoin; both UK and International
• Explanation of the FCA Solo Regulation, Joint BoE-FCA Regulation, Transition Mechanics
• Core Pillars of the System Regime - FCA and BoE’s joint approach
• Baking Asset Split (70/30) Model
• Issuance Safeguards
• Yield and Interest Rules
• Liquidity Support
• Brief outline of key timeline and Execution Milestones
• Review of the current official joint approach of the Bank of England and FCA Paper
• Intro to common Sterling-denominated systemic stablecoins
• Details of Bank of England and the FCA’s regulatory powers (both domestic and international)
• 2026 DAPT Whitepaper
• UK Systemic Stablecoins changes with focus of BoE updates
• Summary and discussion of current problems and proposed solutions of the current systemic UK stablecoin framework, including, but not limited to:
• Overly conservative asset backing, impractical holding caps, credit disintermediation risks, regulatory fragmentation, rebalance reserve composition, issuance guardrails, central bank liquidity backstops and joint regulatory coordination
• Strict asset banking and no commercial contagion, enforceable par redemption and special administrative regimes (SAR)
• STA0048
• Timelines for the 2026/2027 Authorisation Gateway
• Case studies of real past problems and solutions such as the algorithmic collapses such as Terra/Luna and reserve shocks such as the Circle’s exposure to Silicon Valley Bank (Circle USDC /SVB 2023)
• Relevant lessons from the 1825 Country Bank Crisis
• Outline and discussion of UK market relevance

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.