Bank of England Implements Temporary Limits on Systemic Stablecoin Holdings

The Bank of England has announced plans to impose temporary limits on the holdings of systemic stablecoins, as outlined in a November 2025 consultation. These measures aim to safeguard credit access within the UK financial system as it incorporates digital money. The restrictions impact both individuals and businesses, capping individual holdings at £20,000 and business holdings at £10 million respectively, with exemptions for larger organizations. This policy addresses potential financial risks related to stablecoins, influencing institutional investment allocation and potentially redirecting billions towards UK government debt securities.