Highlights: The Bank of England is planning new rules to regulate UK stablecoins and protect the stability of the payment systems. The proposed framework limits holdings to £20,000 for individuals and £10 million for businesses. Stablecoin issuers must back 40% of assets at the central bank and hold 60% in UK government debt. The Bank of England has proposed new rules for sterling-based stablecoins as part of its plan to safeguard the UK’s financial system. The central bank released a consultation paper on Monday outlining measures for regulating stablecoins that could become widely used for payments. BOE Proposes £20K Stablecoin Holding Cap $BTC The Bank of England launched a consultation on November 10, 2025, for regulating systemic stablecoins, introducing temporary limits on holdings to protect financial stability during the transition to digital money. Key drivers:… pic.twitter.com/ZYrqfKcWmv — Investing Wombat (@investingwombat) November 10, 2025 The proposed framework focuses on systemic stablecoins or tokens that can threaten financial stability if mismanaged. The plan directs issuers to back at least 40% of their liabilities with unremunerated deposits at the Bank of England. Issuers may hold the remaining 60% in short-term UK government debt instruments. The Bank will keep the consultation open until February 10, 2026. The bank expects to finalize the rules in the second half of the year. Deputy Governor for Financial Stability Sarah Breeden said the goal is to balance innovation with trust and ensure public confidence in digital money. The Bank said the framework will prepare the UK for a future where stablecoins exist alongside cash and bank deposits. The Bank aims to facilitate innovation while ensuring the country’s payment system remains stable. BoE based its proposals on feedback from the November 2023 discussion paper and its goal to uphold public trust in money. Bank of England Proposes Stablecoin Holding Caps and UK Backing Limits The Bank of England also proposed restrictions on how much individuals and businesses can hold in stablecoins. It suggests a temporary limit of £20,000 per individual and £10 million per organization. The bigger businesses might be exempted when greater balances are required in the normal course of operation. These caps will prevent large outflows from conventional banks as more people adopt stablecoins. The Bank considers that such a rapid movement of deposits into digital assets may place pressure on the supply of credit in the real economy. The Bank can ease the limits once the transition stabilizes. For stablecoin issuers considered systemic at launch, the Bank may allow up to 95% of their reserves in UK government debt. The Bank will reduce this percentage to 60% as the stablecoin grows and stabilizes. The Bank designed the adjustment to balance risk management and issuer viability. In addition, the central bank plans to offer liquidity support to systemic issuers during market stress. This move would create a financial backstop if issuers struggle to liquidate assets in private markets. The Bank noted that His Majesty’s Treasury will determine which stablecoin payment systems qualify as systemic and fall under its supervision. The proposal is a shift from the previous year’s proposal, which would force issuers to deposit all their assets with the Bank, which was quickly criticized by the crypto industry. The updated strategy offers more flexibility while maintaining public confidence. We've invented global, borderless money that lets Finance scale at the speed of technology. But the Bank of England wants to send all the benefits of this to zero by capping the amount of stablecoins an individual can hold at 20k. pic.twitter.com/5XcDaOkwZ6 — Happy (@happysubstack) September 15, 2025 Joint Oversight with FCA and Next Steps Ahead of Launch The non-systemic stablecoins will remain under the supervision of the Financial Conduct Authority. Once a stablecoin becomes systemic, it will fall under the Bank of England. The two regulators will be jointly burdened, the Bank concentrating on risks of prudence and stability, and the FCA to conduct and consumer protection. The regulators will issue a joint approach paper next year to explain how the rules will be used in practice. They also intend to publish Codes of Practice later this year in order to complete the systemic stablecoins requirements. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Highlights: The Bank of England is planning new rules to regulate UK stablecoins and protect the stability of the payment systems. The proposed framework limits holdings to £20,000 for individuals and £10 million for businesses. Stablecoin issuers must back 40% of assets at the central bank and hold 60% in UK government debt. The Bank of England has proposed new rules for sterling-based stablecoins as part of its plan to safeguard the UK’s financial system. The central bank released a consultation paper on Monday outlining measures for regulating stablecoins that could become widely used for payments. BOE Proposes £20K Stablecoin Holding Cap $BTC The Bank of England launched a consultation on November 10, 2025, for regulating systemic stablecoins, introducing temporary limits on holdings to protect financial stability during the transition to digital money. Key drivers:… pic.twitter.com/ZYrqfKcWmv — Investing Wombat (@investingwombat) November 10, 2025 The proposed framework focuses on systemic stablecoins or tokens that can threaten financial stability if mismanaged. The plan directs issuers to back at least 40% of their liabilities with unremunerated deposits at the Bank of England. Issuers may hold the remaining 60% in short-term UK government debt instruments. The Bank will keep the consultation open until February 10, 2026. The bank expects to finalize the rules in the second half of the year. Deputy Governor for Financial Stability Sarah Breeden said the goal is to balance innovation with trust and ensure public confidence in digital money. The Bank said the framework will prepare the UK for a future where stablecoins exist alongside cash and bank deposits. The Bank aims to facilitate innovation while ensuring the country’s payment system remains stable. BoE based its proposals on feedback from the November 2023 discussion paper and its goal to uphold public trust in money. Bank of England Proposes Stablecoin Holding Caps and UK Backing Limits The Bank of England also proposed restrictions on how much individuals and businesses can hold in stablecoins. It suggests a temporary limit of £20,000 per individual and £10 million per organization. The bigger businesses might be exempted when greater balances are required in the normal course of operation. These caps will prevent large outflows from conventional banks as more people adopt stablecoins. The Bank considers that such a rapid movement of deposits into digital assets may place pressure on the supply of credit in the real economy. The Bank can ease the limits once the transition stabilizes. For stablecoin issuers considered systemic at launch, the Bank may allow up to 95% of their reserves in UK government debt. The Bank will reduce this percentage to 60% as the stablecoin grows and stabilizes. The Bank designed the adjustment to balance risk management and issuer viability. In addition, the central bank plans to offer liquidity support to systemic issuers during market stress. This move would create a financial backstop if issuers struggle to liquidate assets in private markets. The Bank noted that His Majesty’s Treasury will determine which stablecoin payment systems qualify as systemic and fall under its supervision. The proposal is a shift from the previous year’s proposal, which would force issuers to deposit all their assets with the Bank, which was quickly criticized by the crypto industry. The updated strategy offers more flexibility while maintaining public confidence. We've invented global, borderless money that lets Finance scale at the speed of technology. But the Bank of England wants to send all the benefits of this to zero by capping the amount of stablecoins an individual can hold at 20k. pic.twitter.com/5XcDaOkwZ6 — Happy (@happysubstack) September 15, 2025 Joint Oversight with FCA and Next Steps Ahead of Launch The non-systemic stablecoins will remain under the supervision of the Financial Conduct Authority. Once a stablecoin becomes systemic, it will fall under the Bank of England. The two regulators will be jointly burdened, the Bank concentrating on risks of prudence and stability, and the FCA to conduct and consumer protection. The regulators will issue a joint approach paper next year to explain how the rules will be used in practice. They also intend to publish Codes of Practice later this year in order to complete the systemic stablecoins requirements. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.