9 min ago2 min readThe Bank of England is getting a new secondary objective on stablecoinsSummaryBritain plans to give the Bank of England a secondary objective supporting innovation in stablecoins, digital money and payments.Financial stability would remain its primary duty, with annual reports to Parliament on the new objective being planned.The move comes as Britain prepares stablecoin rules, including a temporary £40 billion cap for each systemic token.Britain plans to give the Bank of England a new statutory objective to support innovation in stablecoins and other forms of digital money, while keeping financial stability as its primary responsibility.The government plans to add the secondary objective through an amendment to the Financial Services and Markets Bill. The central bank would have to report annually to Parliament on how it is advancing innovation in payment systems and digital money, the Treasury said.The change would turn the government’s push to modernize payments into a formal responsibility for the central bank. Britain is working toward a single regulatory framework covering traditional and tokenized payments, including stablecoins and tokenized deposits, while exploring how the rules should adapt to AI agent payments.“Whilst financial stability will always remain the Bank's primary objective, this secondary objective will support the Bank to continue to drive innovation in ⁠payments ​and digital finance, ensuring that the UK ​remains a global leader in financial services,” City Minister Lucy Rigby said, the Financial Times reports.The Bank in June dropped proposed temporary limits on how many stablecoins individuals and businesses could hold, replacing them with a temporary 40 billion pound ($54 billion) issuance cap for each systemic stablecoin.Issuers could hold as much as 70% of their reserves in short-term British government debt, with the remainder kept as central bank deposits.The Financial Conduct Authority has separately finalized rules for crypto firms and stablecoin issuers, including simplified capital requirements introduced after industry feedback. Firms can apply for authorization from Sept. 30, with the regime scheduled to take effect on Oct. 25, 2027.The stablecoin market is valued at around $303 billion as of this writing, up from around $200 billion at the beginning of last year, according to DeFiLlama data. The lion’s share of that is currently in the form of U.S.-dollar stablecoins.Retail investor-sized stablecoin transactions below $250 have risen from $500 million in 2019 to nearly $70 billion last year, according to Visa data that points to growing consumer use.CoinDesk has reached out to the Treasury for comments but hasn’t heard back at the time of writing.AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.12345678910Anvil: The Missing Collateral LayerAnvil: The Missing Collateral LayerAnvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.Jul 29, 2026Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.Why it matters:Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.View Full Report