Bank of England to grant exemptions for stablecoin holding limits

The Bank of England is easing stablecoin limits! 💷💸 Systemic tokens could hold reserves in government bonds and enter the Digital Sandbox for testing, as regulators balance innovation with financial stability. UK aims to stay competitive in the global crypto space. #CryptoUK #Stablecoins #DigitalFinance Read more: https://zurl.co/hJJoM

If businesses are subject to stablecoin holding limits, then stablecoins can't be used for corporate cash management. There are more use-cases in the world than 'retail' and 'wholesale'.

To Westminster for Digital Asset Week, where the Bank of England's response to industry backlash on its plans for stablecoins is getting a lot of airtime. Clear take from Anna Irrera at Bloomberg here:

We’re honoured to be featured in Bloomberg News on the recent Bank of England proposal to carve out exceptions in its stablecoin cap policy following industry feedback. As regulation evolves, it’s critical that fintechs and financial institutions build systems that support smaller businesses rather than exclude them. For SMEs navigating access to accounts and finance, we believe the future lies in balanced, progressive regulation, not blanket limits. Check out the full coverage: https://lnkd.in/eiR73fFR #Fintech #Stablecoins #Regulation #DigitalFinance #SMEs #Innovation Anna Irrera, Jannah Patchay, Tony McLaughlin

The Bank of England is reportedly set to grant exemptions to its planned stablecoin holding limits, allowing crypto exchanges and select businesses to hold larger token reserves. The move part of its upcoming Digital Securities Sandbox, will let firms use stablecoins for settlement, giving the BoE real-world insight into their use. The decision follows industry pushback against proposed caps of £10k–£20k for individuals and £10m for businesses, amid concerns the UK could fall behind the US and EU in fintech innovation. https://lnkd.in/eZwhzpQQ Meanwhile JP Morgan claim US stablecoins set to increase demand for US $ by $1.4 trillion...

🇬🇧 The Bank of England plans to ease stablecoin holding limits to keep the UK competitive in digital finance. 💷 Select firms may exceed caps under supervision, signaling a shift toward balanced crypto innovation. ⚖️ #Stablecoins #Crypto https://lnkd.in/dmfsnSet

🇬🇧 Bank of England’s Stablecoin Cap Risks Stifling UK Innovation... In today’s Financial Times, Ben Lee, Partner at Andersen (a CryptoUK member), warns that the Bank of England’s proposal to cap stablecoin ownership is a blunt instrument that will choke off innovation in UK financial services. Rather than safeguarding consumers, the proposal risks insulating banks from competition, worsening the UK’s long-running debanking problem, and sending a clear message: Britain is closed for business when it comes to digital assets. With other major jurisdictions such as the US and EU taking a more balanced approach, the UK now risks falling behind in the race to become a global hub for digital assets. For those with FT subscriptions, you can read the letter in full here: https://buff.ly/deP2T7M At CryptoUK, we believe that smart, proportionate regulation is essential — but it must encourage innovation, competition, and consumer protection, not stifle them. Keeping the UK at the forefront of crypto innovation requires a strong, collaborative effort across the industry. If your organisation wants to actively shape competitive and effective regulation, we invite you to join our growing community of more than 100 members: https://buff.ly/f3lwTZO

🚨 CRYPTO: Major banks explore issuing stablecoin pegged to G7 currencies Ten major banks including Bank of America, Deutsche Bank, Goldman Sachs, and UBS are jointly exploring issuing a stablecoin, the latest sign of traditional finance seeking to get to grips with the growth of digital assets. The group of lenders, which includes Citi, MUFG, Barclays, TD Bank, Santander, and BNP Paribas will work together to explore creating blockchain-based assets pegged to G7 currencies, the banks said in a statement on Friday. The project, which is in its early stages, will explore whether there is value in issuing assets on public blockchains which are pegged 1:1 to real-world currencies - a type of cryptocurrency known as stablecoins. 🔹 CRYPTO RALLY, TRUMP AID INTEREST IN STABLECOINS Various banks and other financial institutions have announced plans to look at launching stablecoins, as soaring crypto prices and U.S. President Donald Trump's support for the sector has sparked a revival of interest in the idea of using blockchain in the mainstream financial system. Regulators and financial stability authorities have expressed concern that stablecoins could facilitate the movement of funds outside regulated banking systems, potentially undermining the role of commercial banks in global payment flows. Bank of England Governor Andrew Bailey has warned UK banks against issuing their own stablecoins, while the European Central Bank President Christine Lagarde said in June that privately issued stablecoins posed risks for monetary policy and financial stability. So far stablecoins have been largely used for moving money between crypto markets, which remain a small part of wider financial markets. Nearly nine-tenths of stablecoin transactions are related to crypto trading while just 6% for actual payment of goods or services, BCG estimated in a report earlier this year. The market is dominated by the El Salvador-based Tether.io, which accounts for $179 billion of the $310 billion worth of stablecoins in circulation, according to CoinGecko. France's Societe Generale, which was not included in the list, became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary earlier this year. The token has not been widely adopted, with just $30.6 million in circulation. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source: Reuters #Fintech #banking #crypto

"Thai bank customers are experiencing massive bank lockouts, and France says it could block companies operating on crypto licenses obtained in other parts of the European Union."

The Bank of England is reportedly preparing to introduce exemptions to proposed caps on corporate stablecoin holdings, following industry pushback and growing pressure to keep pace with U.S. developments. The central bank is expected to grant waivers for certain businesses — including crypto exchanges that require large stablecoin reserves — and allow stablecoins to be used as settlement assets within its upcoming Digital Securities Sandbox. Initial proposals suggested caps of up to £20,000 for individuals and £10 million for businesses, but these could now be relaxed when full consultation details are released later this year. Governor Andrew Bailey has also struck a more conciliatory tone, writing in the Financial Times that it would be “wrong” to oppose stablecoins on principle, and acknowledging their potential to drive innovation in payment systems both domestically and globally.