Bank of England Sets £40 Billion Issuance Guardrail for Systemic Stablecoin Issuers, Replaces Holding Caps
By
SendTech Times Desk
Summary
The Bank of England has published new policy and draft rules for systemic stablecoin issuers, replacing previously planned temporary holding limits with an initial £40 billion issuance guardrail. The framework keeps household and business use unrestricted, shifting the near-term constraint from user ownership caps to issuer scale. The Bank stated this approach should protect credit provision while being cheaper and easier to implement than temporary holding limits. Additionally, the draft rules raise the short-term government debt backing share to 70%.
Source
bskyBank of England Sets £40 Billion Issuance Guardrail for Systemic Stablecoin Issuers, Replaces Holding Capsstechtimes.comKey quotes
· 3 pulledThe Bank said the approach should protect credit provision while being cheaper and easier to implement than temporary hol
The Bank of England has published a policy statement and draft rules for systemic stablecoin issuers, replacing planned temporary holding limits with an issuance guardrail for each systemic stablecoin.
The change matters for payment firms because it shifts the near-term constraint from user ownership caps to issuer scale.
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