The U.K. central bank withdraws its retail holding restrictions in favor of a £40 billion total issuance cap, enhancing yield terms for token issuers ahead of a 2027 rollout.
By Olivier Acuna|Edited by Jamie Crawley Jun 22, 2026, 10:48 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on The BOE has changed its position on capping stablecoin holdings for individuals and businesses. (Unsplash)SummaryShow- The Bank of England has abandoned its previous plan to limit stablecoin holdings for individuals and corporations, opting for a £40 billion aggregate cap instead.
- Regulators decreased the required ratio of non-interest-bearing central bank deposits backing stablecoins to 30%, allowing issuers to invest 70% of reserves in short-term U.K. government securities while still prohibiting interest payments to coin holders.
- This decision, influenced by industry feedback and a House of Lords committee, aims to ensure business viability and competitiveness, with the restrictions expected to be lifted as the market evolves prior to the full implementation of U.K. crypto regulations in 2027.
The Bank of England has officially reversed its previous stance regarding limits on stablecoin holdings for individuals and businesses, responding to pressure from both the U.K. House of Lords and the crypto sector.
In a statement released on Monday, the central bank indicated it would no longer impose a £20,000 ($27,000) cap for individuals and a £10 million limit for corporations. Instead, the BOE will implement a temporary issuance ceiling, setting the maximum circulation for any single systemic stablecoin at £40 billion ($50.6 billion).
Furthermore, the central bank has reduced the required backing of central deposits that yield no interest to 30%. This adjustment allows stablecoin companies to allocate up to 70% of their reserves into yield-generating short-term U.K. T-bills with maturities of less than six months, as noted in the statement.
While issuers can earn returns from these T-bills, the BOE has explicitly prohibited firms from paying interest or dividends directly to users merely for holding the stablecoin. However, it will allow for activity-based incentives, such as cash-back tokens or loyalty points linked to transactions made through Web3 applications.
The BOE acknowledged the feedback received during a recent consultation period that concluded earlier this month, which indicated that the proposed limits could hinder the viability of business models and international competitiveness. “We recognize the concerns raised and have reevaluated the analysis that informed our calibration,” the bank stated.
This reversal also follows a report from the cross-party Financial Services Regulation Committee of the U.K. Parliament's second chamber, urging the BOE to reconsider its proposed limits, which “could significantly impact the business viability of stablecoin issuers.”
The change in direction represents a notable achievement for the crypto industry, which had argued that the initial, overly restrictive caps would greatly inhibit innovation.
With the new guidelines, both everyday users and large corporations will no longer be subject to restrictions on the volume, frequency, or nature of stablecoin transactions. The BOE explained that the new cap for stablecoin issuers is designed to safeguard the broader U.K. financial system from abrupt capital exodus while fostering innovation, global competitiveness, and growth.
The bank plans to gradually reduce and ultimately eliminate the issuance cap once the market stabilizes. Following a final feedback period that concludes in September, this new framework is expected to enable regulated stablecoins to be officially launched in the U.K. in 2027, coinciding with the anticipated implementation of the country’s crypto regulations.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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