Bank of England replaces individual holding limits with a £40 billion cap per systemic stablecoin, aiming to boost market competitiveness by 2027.
The Bank of England will abandon proposed limits on individual and corporate stablecoin holdings, opting instead for a £40 billion aggregate cap per systemic stablecoin. The move follows industry and parliamentary pushback, with regulators seeking to balance oversight and business viability ahead of 2027 regulations.
Previously, the central bank had planned a £20,000 limit for individuals and £10 million for corporations. The new framework also reduces non-interest-bearing central bank deposit requirements to 30%, allowing issuers to invest up to 70% of reserves in short-term UK government debt.
The temporary guardrail is designed to phase out as the market matures, with full crypto rules expected in 2027. The BOE stated the shift aims to preserve competitiveness while maintaining financial stability.