Bank of England Removes £20,000 Stablecoin Cap, Allows 70% Reserve Investment From 2027

According to the Bank of England, the central bank recently unveiled draft proposals that relax several restrictions on regulated stablecoins. The revised framework removes the previously planned £20,000 cap on individual stablecoin holdings and allows issuers to hold up to 70% of reserves in UK government debt, up from stricter deposit requirements.

The changes also maintain a £40 billion limit per major stablecoin to prevent excessive concentration. Regulated UK stablecoins are expected to operate under the new framework from 2027, as the Bank of England continues consulting industry stakeholders before final implementation.