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ARTICLE · 12 DECEMBER 2025

Proposed Regulatory Regime For Sterling-denominated Systemic Stablecoins

Addleshaw Goddard
Addleshaw Goddard
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Addleshaw Goddard

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On 10 November 2025, the Bank of England (BoE) published a consultation paper setting out its proposed regulatory framework for systemic stablecoins.

United KingdomFinance and Banking
Tess Kelly
Tess Kelly
Stephen Fishbourne
Stephen Fishbourne
Christina Proffitt
Christina Proffitt

On 10 November 2025, the Bank of England (BoE) published a consultation paper setting out its proposed regulatory framework for systemic stablecoins. Stablecoins are digital assets designed to maintain a stable value and can be used for both retail payments and wholesale settlement. Key proposals include requirements for the composition of backing assets held by systemic stablecoin issuers. Issuers will be permitted to hold up to 60% of their backing assets in short-term UK government debt, with the remaining 40% held as deposits at the BoE.

On 10 November 2025, the Bank of England published a landmark consultation paper proposing a new regulatory regime for sterling-denominated systemic stablecoins. This regime aims to balance innovation in payments with the imperative of monetary and financial stability. The consultation is accompanied by a Financial Stability Paper. While the overarching policy framework is now public, the detailed Codes of Practice are

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