The Bank of England has softened its approach to the future regime for systemic sterling stablecoins, responding to market criticism that earlier restrictions were too tight. According to the Financial Times, the Bank is moving away from direct ownership caps for users and companies and toward a temporary issuance guardrail for systemic issuers.

The policy trade-off is clear: the UK wants to create room for regulated sterling stablecoins while keeping control over risks to bank deposits, credit provision and payment stability. The revised approach also points to a more flexible reserve structure, where not all backing assets would have to sit as central bank deposits.

• the focus shifts from ownership caps to an issuance limit for systemic stablecoins;
• the discussed guardrail is around GBP 40 billion per systemic issuer;
• the regulator still prioritises prompt redemption and user protection;
• the UK is trying to stay competitive with US and EU digital asset regimes.

For the market, this is a useful example of the compromise between innovation and financial stability. If rules are too restrictive, issuers and liquidity may move elsewhere. If they are too loose, stablecoins could amplify deposit outflows from banks and create new stress during mass redemptions.

For exchange service users, the practical point is unchanged: even a regulated stablecoin should be assessed by reserves, redemption mechanics and available liquidity. On the Obmin.me exchange page, users can choose directions for crypto and stablecoin exchange, while operational checks are described in the AML/KYC policy.

Source: Financial Times.