According to a Bloomberg report, the central bank plans to introduce exceptions to its earlier ownership limits, which had capped institutional stablecoin holdings at £10 million (around $13.4 million). The new exemptions would apply mainly to crypto exchanges and financial institutions that need to maintain substantial liquidity for trading and settlements.
This adjustment is part of the Bank’s broader Digital Securities Sandbox initiative, which aims to explore the use of stablecoins in digital asset payments and tokenized securities. The sandbox will test how these tokens function within regulated financial environments before full-scale adoption.
Pressure From the U.S.
The decision comes amid intensifying competition from the United States, where the recently passed GENIUS Act has created a more comprehensive legal framework for stablecoin issuers and users.
London’s policymakers are now under pressure to modernize their approach to avoid losing ground to Washington in the race to attract blockchain and fintech innovation.
Previously, the Bank of England had proposed a dual-cap system limiting retail holders to £20,000 and institutions to £10 million. Industry leaders quickly warned that such restrictions could stifle liquidity and discourage major players from entering the market.
Source: Bloomberg
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