Bank of England Unveils Updated Stablecoin Rules With 70% Reserve Allowance Ahead of 2027 Rollout

The Bank of England published revised draft regulations for systemic stablecoins on June 23, increasing the permitted reserve allocation in UK government securities from 60% to 70% and introducing a temporary £40 billion issuance cap for each stablecoin. The central bank replaced earlier proposals for individual and business holding limits with the new cap, which will undergo periodic reviews and could be removed once credit market risks are deemed manageable. Implementation is planned for 2027, with the finalized framework expected by the end of 2026.
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