The Bank of England has scrapped its proposed limits on how much of a stablecoin individuals and companies can hold, opting instead for a per-stablecoin issuance cap of £40 billion.
Crypto media outlet BlockBeats reported the change on June 22, citing the central bank’s updated regulatory framework. The original plan would have restricted holdings by any single entity – a constraint that industry critics argued would cripple pound-denominated stablecoins before they could gain traction.
Under the revised approach, the Bank will cap the total initial issuance of each stablecoin at less than £40 billion. Requirements for eligible reserve assets have also been relaxed in part, following feedback from market participants.
The move marks a significant retreat from a more restrictive stance. For stablecoin issuers eyeing the UK market, the previous holding caps would have made it nearly impossible to scale up to serve businesses or large payment flows. The new issuance limit – still substantial – gives room to operate and compete with dollar-pegged alternatives.
Market reaction has been muted so far. Prices and trading volumes for the few existing pound-denominated stablecoins showed no clear move immediately after the report. But traders and project teams privately view the shift as a practical step that removes a major adoption barrier.
The Bank stressed that final rules must still be completed before the end of the year, and that systemic-risk safeguards will remain in place. That means the £40 billion cap could be revised higher or lower as the regulator gathers more data.
For now, the direction is clear: the BoE is listening to the industry and calibrating rules to encourage a viable digital-pound ecosystem. The watch item for the second half of 2026 is whether any issuer actually files for approval under the new framework – and whether the £40 billion line proves to be an effective ceiling or a de facto floor for market confidence.
Bank of England lifts personal holding limits, sets £40B cap on stablecoin issuance
The Bank of England removed limits on how much stablecoin individuals and companies can hold, instead capping total issuance per stablecoin at £40 billion. This change affects stablecoin issuers and users in the UK by making it easier for pound-backed digital coins to grow and be used in business payments.