Bank of England Revamps Stablecoin Reserves for Issuers, Expanding Financial Integration

The Bank of England has made significant changes to its stablecoin regulations, offering a new framework for issuers and potentially impacting the UK’s digital financial landscape. Deputy Governor Sarah Breeden announced these revisions, allowing systemically important issuers to utilize high-quality liquid assets as part of their reserves. This shift aligns with expanding the UK Digital Securities Sandbox by enabling the use of stablecoins and tokenized deposits for settling tokenized securities within the sandbox.