The Bank of England published its policy statement and draft Code of Practice for systemic stablecoin issuers on Monday, replacing the per-person holding caps it consulted on last year with an issuer-level issuance ceiling and a more generous reserve-asset mix. Industry feedback can be filed until 22 September.
The package, set out in the BoE's release and the accompanying policy statement on sterling-denominated systemic stablecoins, pairs a £40 billion temporary issuance guardrail for each designated coin with a backing-asset rule that allows up to 70% in short-dated UK government debt and at least 30% in unremunerated central bank deposits. The earlier consultation, published in November 2025, had floored the gilt share at 60% and proposed individual holding limits of around £20,000 per retail user.
Sarah Breeden, the BoE's Deputy Governor for Financial Stability, framed the package as the foundation of the regime. "This is a major milestone in delivering greater choice and innovation in UK payments," she said in the BoE's announcement. "Innovation thrives on trust. And today we've set out the foundations of that trust for a new form of money, with prompt redemption, strong protections and central bank support." Breeden flagged the same direction of travel in a City Week speech on 19 May.
