Bank of England stablecoin rules: GBP issuance cap £40B and reserve mix

Bank of England rules for stablecoins (policy statement and draft Code of Practice) don change how UK dey handle systemic GBP stablecoins. Biggest change be say dem remove the proposed individual and business holding caps. Instead, Bank of England put one temporary issuance limit of £40B (about $53B) per systemic GBP stablecoin product to control financial stability risk. Main GBP stablecoin rules traders suppose watch: - No individual or business holding limits, so make real-world payments and usability better. - Asset backing: up to 70% of reserves fit be short-term interest-bearing UK government debt, the remaining 30% go dey held as non-interest-bearing deposits for the Bank of England. - Timeline: consultation close Sept. 22, 2026, final Code of Practice expected by year-end; regulated GBP stablecoins planned for 2027. Market impact angle from the article: the £40B issuance cap small no be small compared to major dollar stablecoins (USDT ~$186B, USDC ~$74B). If demand rise quicker pass the capped supply, secondary-market trading fit trade above par, creating scarcity premium instead of the usual peg-down risk. For crypto traders, this mean GBP stablecoins fit become more usable for UK payments and sandbox trials, but short-term growth dey structurally constrained compared to USDT/USDC. Make you watch liquidity and pricing divergence if issuance demand pass the cap.