Bank of England Proposes New Stablecoin Regulations

The Bank of England proposed new stablecoin regulations, including asset backing and holding limits, aiming to strengthen financial stability in the UK’s crypto sector.

If implemented, these measures could significantly impact stablecoin operations and market dynamics, as issuers adapt to the stringent requirements on asset allocation and holdings.

Bank of England Sets Stringent Stablecoin Reserve Requirements

The Bank of England’s proposal on November 10, 2025 aims to regulate stablecoins by requiring them to hold up to 60% in short-term UK government bonds and at least 40% in deposits at the central bank. Individuals face a £20,000 limit on holdings, while businesses can hold up to £10 million.

The regulations focus on maintaining financial stability, influencing the market by changing reserve asset compositions. Stablecoins regulated by the Financial Conduct Authority will see a significant shift in investment strategies and capital allocations.

“Today’s proposals mark a pivotal step towards implementing the U.K.’s stablecoin regime next year. We’ve listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England.” – Sarah Breeden, Deputy Governor for Financial Stability, Bank of England

UK’s £20,000 Stablecoin Limit Stronger Than US and EU

Did you know? The Bank of England’s proposed stablecoin holding limit of £20,000 for individuals is stricter than the current regulations imposed by the US and EU on similar digital assets.

Ethereum (ETH), updated at 21:06 UTC on November 10, 2025, is valued at $3,562.24 with a market cap of $429.95 billion. It holds a 12.05% market dominance. Over the last 24 hours, its trading volume was $36.18 billion, reflecting a -0.62% price shift. Data sourced from CoinMarketCap.

Coincu research team suggests that the UK regulation could reshape the competitive landscape for stablecoin issuers. Such regulatory clarity may stabilize the market but could also limit the rapid innovation and expansion traditionally associated with digital currencies.