Bank of England swaps stablecoin holding limits for £40 billion issuance cap under draft rules for 2027

UK regulators have overhauled their approach to systemic stablecoins, dropping proposed wallet-level holding limits in favour of an issuance cap. The Bank of England set a temporary guardrail of £40 billion per systemic stablecoin. It also eased reserve rules for issuers by allowing a larger share of backing assets in short-term UK government debt.