UK FCA pick four firms for stablecoin sandbox trials to shape final rules

UK Financial Conduct Authority (FCA) don pick four firms — Monee Financial Technologies, ReStabilise, Revolut and VVTX — to join one special stablecoin cohort for im Regulatory Sandbox. Dem go start trial for Q1 2026, wey go focus on stablecoin issuance and real‑world use cases like payments, wholesale settlement and digital asset trading. Each participant wan test issuance of UK stablecoins under the proposed regulatory framework. The live tests go help shape FCA final stablecoin rules, complement the Digital Securities Sandbox and give regulator feedback to participants. Regulatory context: FCA publish consultations for May 2025 about stablecoin issuance, custody and prudential regime. The proposed measures include independent third‑party custodians for reserve assets, minimum 5% on‑demand reserve, ban on paying interest to holders, segregation of reserves into statutory trust, same‑day redemption with finish by end of next working day, and permanent minimum capital requirement of £350,000 for qualifying issuers. FCA want final rules in 2026 for implementation in 2027 but dem still need law to give full power for rulemaking. Political and market context: House of Lords Financial Services Regulation Committee dey run inquiry on stablecoins (written evidence due 11 March 2026) as experts dey mixed about risk and utility. The sandbox follow global momentum — regulator and private moves on stablecoins for US, Hong Kong, Japan, South Korea and EU — and e go clear compliance standards for issuers and intermediaries. For traders, the tests go reduce regulatory uncertainty about UK‑issued stablecoins, wey fit support uptake for payments and trading rails once rules and issuer approvals don finalize.