FCA Selects Four Firms to Test Stablecoin Innovation in UK Sandbox

• Financial Conduct Authority sandbox tests stablecoins under real market conditions.
• FCA selects four firms spanning payments, settlement, and crypto trading use cases.
• Sandbox findings will help shape and finalize the UK’s stablecoin regulatory framework.

The UK’s Financial Conduct Authority (FCA) has taken a significant step to support innovation in stablecoins by selecting four firms for its Regulatory Sandbox. This initiative allows companies to test their stablecoin offerings in real-world conditions while complying with proposed regulatory standards. By providing a controlled environment, the FCA aims to assess policy effectiveness and ensure the new rules promote safe and responsible growth in digital finance.

Twenty applications were submitted for the stablecoin cohort, reflecting strong industry interest. After careful review, the FCA chose Monee Financial Technologies, ReStabilise, Revolut, and VVTX. 

These companies represent a diverse range of use cases, including payments, wholesale settlement, and crypto trading. Their participation will help regulators understand how stablecoins function across different financial applications.

Real-World Testing and Regulatory Insights

The sandbox testing provides a platform for firms to trial their products with appropriate safeguards. Each company will receive ongoing guidance from FCA specialists, helping them align their operations with regulatory expectations. 

Consequently, the FCA can refine its proposed stablecoin policies based on live data and practical insights. This approach ensures that future rules are both clear and actionable for market participants.

Significantly, the testing focus is on stablecoin issuance. However, the program also considers broader implications for payments and trading activities. 

By observing these real-world operations, the FCA aims to strengthen consumer protection and enhance trust in digital financial services. Moreover, the sandbox complements other FCA innovation initiatives, including the Digital Securities Sandbox, to encourage responsible experimentation in the financial sector.

Preparing for the Future Regulatory Framework

The FCA plans to publish findings from the sandbox in late 2026, informing the final stablecoin rules. All participating firms must secure authorization under the new regime, expected to take effect in October 2027. 

Firms interested in UK crypto activities can begin preparing from September 2026, when the application gateway opens. Additionally, the FCA is offering webinars to guide prospective applicants on requirements, including anti-money laundering rules.

Related: UK House of Lords Committee Launches Review of Stablecoin Regulation