The UK Financial Conduct Authority (FCA) has selected Revolut, Monee Financial Technologies, ReStabilise, and VVTX from 20 applicants to participate in a regulatory sandbox for stablecoins.
This program will allow firms to test stablecoin-based products in real-world conditions with appropriate safeguards.
This initiative will help the FCA assess its supervisory policy in practical scenarios and ensure "clarity, efficiency, and support for responsible innovation in the future." The regulator will focus primarily on the process of issuing digital assets.
“The proposals from the selected four companies represent a wide range of stablecoin use cases, including payments, wholesale settlements, and cryptocurrency trading. Each firm will receive feedback from FCA specialists and contribute to shaping the UK’s regulatory approach,” the agency added.
Testing will commence in the first quarter, and the results will help establish final rules for stablecoins in the country by late 2026.
“We support UK stablecoin issuers to ensure they gain trust in payments, settlements, and trading. This will benefit consumers and financial transactions, as well as help implement the FCA's strategy and the National Payment Systems Concept of the government,” stated Matthew Long, Director of Payments and Digital Assets at the FCA.
It is worth noting that in February, the UK Treasury appointed HSBC to conduct a pilot issuance of digital government bonds.