FCA selects Revolut, Monee, ReStabilise and VVTX for UK stablecoin sandbox trials
The UK Financial Conduct Authority (FCA) has selected four firms — Revolut, Monee Financial Technologies, ReStabilise and VVTX — from 20 applicants to join a stablecoin-focused cohort in its Regulatory Sandbox. Trials begin in Q1 2026 and will test stablecoin issuance and use cases including payments, wholesale settlement and crypto trading under the UK’s proposed stablecoin rules. The sandbox outcomes will inform the FCA’s final stablecoin regime expected in late 2026; participating firms must be authorised under the new regime when it fully takes effect in October 2027. The FCA frames the exercises as building trusted stablecoin infrastructure aligned with the Government’s National Payments Vision. The selection signals targeted regulatory support for fiat‑backed tokens and may accelerate product readiness and compliance for the chosen firms. Industry voices, including Coinbase’s CEO, have criticised parts of the UK approach — notably potential Bank of England caps on holdings — arguing such measures could hinder innovation and competitiveness. For traders, the sandbox narrows regulatory uncertainty for UK-focused stablecoin products, may increase institutional engagement in GBP-backed tokens, and could influence liquidity and on‑ramp/off‑ramp flows once tested products seek market adoption.
Neutral
The announcement is broadly market‑neutral for token prices because it is regulatory progress rather than an immediate product launch or liquidity event. Positive factors: the FCA sandbox reduces regulatory uncertainty for UK-focused stablecoin projects, signals government-aligned support for fiat‑backed tokens, and could encourage institutional on‑ramps and product development — all of which support longer-term adoption and liquidity. Negative/limiting factors: chosen firms must still meet the final rules and obtain authorisation by October 2027, and industry concerns (e.g., potential BoE caps on holdings) could restrict demand or design choices for UK stablecoins. Short-term price impact for generic stablecoins is likely minimal because these trials do not change existing token supply or collateral models immediately. Market participants focused on UK fiat‑backed tokens may react positively as regulatory clarity improves, but broader crypto market direction will continue to depend on macro factors and other on‑chain events.