Latest Uk Fca Makes Pound Stablecoin Payments 2026 Priority 2025
The UK’s financial watchdog has put British pound‑pegged stablecoin payments on its 2026 growth agenda, as London scrambles to keep its edge in digital finance.
The UK’s Financial Conduct Authority (FCA) has made pound-denominated stablecoin payments a top priority for 2026, fast-tracking a dedicated regulatory sandbox for prospective issuers ahead of new digital-asset rules.
The watchdog said the move is part of a package of “ambitious new growth measures” for next year, aimed at supporting UK‑issued stablecoins as a way to make payments faster and more convenient.
In a letter to Prime Minister Sir Keir Starmer this week, the regulator outlined almost 50 reforms aimed at strengthening the UK’s position as a global financial hub. Among them, the FCA flagged advancing UK-issued pound stablecoins in 2026 as a central milestone in its broader growth strategy.
Companies that plan to issue a pound stablecoin in the UK and want to test their products should apply by Jan. 18, 2026, to the regulatory sandbox, which is designed to let them pilot stablecoin solutions in a controlled environment before the full regime takes effect.
Related: UK finance regulator FCA a ‘deterrent’ to crypto industry, says CryptoUK
The sandbox will sit under the FCA’s existing digital sandbox framework, providing participants with regulatory guidance as they test compliance, stability and consumer-protection measures for sterling-backed digital currencies.
The announcement comes as crypto industry stakeholders have been encouraged to submit feedback on UK investment reforms. Earlier this week, the watchdog invited comments from firms involved in digital assets on a series of draft guidance papers expected to feed into the 2026 regulatory framework.
Related: Tether’s stablecoin business set for another record year of profitability
Smaller jurisdictions connected to the UK’s financial ecosystem are also making pushes of their own. The Bailiwick of Guernsey’s Financial Services Commission (GFSC) opened a new consultation on its Digital Finance Initiative on Dec. 11, seeking feedback on tokenization, blockchain infrastructure, and stablecoin regulation.
Source: CoinTelegraph
