Policy Event Β· High impact

Bank of England Softens Stablecoin Reserve Plan to Allow Short-Term Gilts

The Bank of England is reported to be revising its systemic sterling stablecoin approach so issuers may hold up to 60% of reserves in short-term UK government debt rather than placing all reserves at the central bank. The shift would materially improve the economics of GBP stablecoins while keeping the regime inside prudential supervision.

High impactπŸ‡¬πŸ‡§ United KingdomRegulationStablecoinGBPBank of EnglandFCA

APAC FINSTAB analysis

Although this is outside core APAC, it is relevant because global market-structure, enforcement, and stablecoin precedents often shape licensing expectations for APAC exchanges, issuers, custodians, and DeFi teams. Protocols/assets in scope: GBP. Named institutions or platforms: Bank of England, FCA. Teams should monitor the original source, map the change to licensing, custody, disclosure, and market-access obligations, and update their jurisdiction playbooks before the next compliance review.

Compliance read-through: map this event to entity licensing, market-access, custody, disclosure, token listing, and operational-risk obligations before expanding or marketing in the affected jurisdiction.

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