The Bank of England (BoE) is treating stablecoins as 'a new form of money,' according to Sasha Mills, executive director of financial market infrastructure. Speaking at the Financial Times Digital Asset Summit, Mills stated that by the end of the year, the BoE will open applications for systemic stablecoin issuers widely used in payments. The bank distinguishes between systemic stablecoins, which pose risks to financial stability and are regulated by the BoE, and non-systemic ones overseen by the Financial Conduct Authority (FCA). Mills emphasized that the BoE is not picking winners between tokenized deposits and stablecoins, allowing user preference to emerge. Matthew Long, FCA Director for Payments and Digital Assets, expressed support for a GBP-denominated stablecoin, noting that four firms have been approved in the FCA's regulatory sandbox. Mills highlighted that while 99% of global stablecoins are dollar-denominated, the UK's regime is perceived as more robust because it treats stablecoins as money. The UK's timing aligns with the US's GENIUS Act implementation.

Key facts

• BoE will accept applications for systemic stablecoin issuers by end of 2025.
• Systemic stablecoins regulated by BoE; non-systemic by FCA.
• FCA has approved four firms in regulatory sandbox for stablecoins.
• 99% of global stablecoins are dollar-denominated.
• UK stablecoin regime aligns with US GENIUS Act timing.