Bank of England flips systemic stablecoin caps from holder to issuer

The Bank of England has officially revised its regulatory framework for systemic stablecoins, shifting the focus of holding limits from individual users to the issuers themselves. Previously, the central bank proposed strict caps of £20,000 for individuals and £10 million for businesses, which faced significant industry pushback due to concerns over usability and adoption. By abandoning these restrictive user-level caps, the Bank of England aims to foster a more viable environment for stablecoin integration within the UK financial system. The new policy position and draft code of practice instead emphasize robust reserve requirements and operational standards for issuers to mitigate systemic risk. This pivot represents a critical maturation in UK digital asset regulation, signaling a move toward accommodating stablecoins as a legitimate payment mechanism. For the broader RWA market, this regulatory clarity reduces uncertainty for firms looking to issue sterling-backed tokens. Ultimately, this shift aligns the UK's approach more closely with global standards, potentially accelerating the institutional adoption of stablecoins in the region.