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Bank of England sets the tone for 2026: Systemic stablecoins and tokenized collateral fully implemented, digital finance accelerates to take shape
On January 29, the Bank of England clarified that it will prioritize the regulation and infrastructure development of systemic stablecoins and tokenized collateral by 2026, marking a significant step forward in the UK's digital finance and blockchain financial regulation. Sasha Mills, Director of Financial Market Infrastructure at the Bank of England, stated at the Tokenization Summit that the coming year will be a “key window for shaping the UK digital financial market framework.”
According to disclosed plans, the Bank of England will provide central bank deposit accounts to “systemic stablecoin” issuers and offer liquidity support when necessary. Its reserve structure will consist of 60% short-term UK government bonds and 40% central bank deposits to enhance stability and transparency. Meanwhile, regulators are evaluating a temporary cap on individual stablecoin holdings set at £20,000 and £10 million for corporate holdings to prevent systemic risk from spreading.
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