The Bank of England has updated its stablecoin regulations, allowing systemically important stablecoin issuers to hold a portion of their reserves in interest-earning assets. This change, announced by Deputy Governor Sarah Breeden, is expected to benefit large issuers by enabling them to generate revenue from their reserves.
The new regulations also integrate stablecoins into the UK's financial infrastructure by allowing them and tokenized deposits to be used for settling tokenized securities within the UK Digital Securities Sandbox. This move helps align the country's digital asset strategy with its traditional financial markets.
Industry reaction has been positive, and the Bank of England is continuing to consult with the industry to finalize the new regulatory framework.
September 2025, Cryptoniteuae