The Bank of England has outlined a regulatory framework for stablecoins in the UK, seeking public feedback on the proposed rules before finalizing them by late 2026. The proposal introduces a regime specifically for sterling-denominated ‘systemic’ stablecoins, aiming to mitigate potential risks to the UK’s financial system. Under this framework, issuers of these tokens would be required to hold at least 40% of their liabilities in unremunerated deposits with the Bank of England, while allowing up to 60% in short-term UK government debt. Individual holding limits are proposed at 20,000 British pounds ($26,300), with exemptions for businesses allowing higher balances depending on operational needs.