The Bank of England (BoE) has outlined its plan to prioritize key innovation areas in 2026, including stablecoins and tokenization, to shape the future of the UKThe Bank of England (BoE) has outlined its plan to prioritize key innovation areas in 2026, including stablecoins and tokenization, to shape the future of the UK

Bank Of England Shares Stablecoin, Tokenization Plan For UK’s Digital Financial Future

The Bank of England (BoE) has outlined its plan to prioritize key innovation areas in 2026, including stablecoins and tokenization, to shape the future of the UK’s digital financial landscape.

BoE To Prioritize Stablecoins In 2026

On Thursday, the Bank of England’s executive director for financial market infrastructure, Sasha Mills, shared the bank’s priorities plan for the year, highlighting the role of regulators in ensuring a safe, responsible, innovative future.

During her speech at the Tokenisation Summit in London, Mills affirmed that financial authorities have “the opportunity to build truly holistic digital financial markets in the UK, bringing real benefits to the real economy.”

To achieve this, the BoE will prioritize systemic stablecoins, tokenized collateral, and the Digital Securities Sandbox (DSS) as three key areas of innovation this year.

The executive director explained that the Bank is focused on advancing its efforts to regulate stablecoins, including its collaboration with the Financial Conduct Authority (FCA) to test the tokens in the DSS, and clarifying policies on the treatment of tokenized collateral under the UK European Market Infrastructure Regulation (EMIR).

Regarding stablecoins, Mills detailed that they “have the potential to modernise retail and wholesale payments, enabling faster, cheaper and more efficient transactions. They could offer a valuable choice for individuals and businesses making payments in the UK and they could offer new functionalities – through programmability – to deliver real benefits for the UK real economy.”

As a result, the Bank is planning to finalize its regime for systemic stablecoins, alongside the FCA, by the end of this year. She noted that these tokens “need to meet the same standards as existing forms of money used in the UK real economy.”

As reported by Bitcoinist, the BoE released a consultation paper on its proposed regulatory framework for sterling-denominated systemic stablecoins, addressing backing rules and holding limits.

Notably, the Bank also moved forward with a controversial proposal to cap stablecoin ownership to £10,000 to £20,000 for individuals and £10 million for businesses, similar to its proposed approach to the digital pound.

UK Seeks Regulatory Clarity For Market Stability

The BoE also seeks to offer clarity for its second priority, tokenization, as the UK is already seeing “practical applications of tokenisation being piloted in collateral markets, offering greater automation and faster settlement, with the potential to lower firm operating costs and increase system-wide liquidity.”

Mills noted that, just like with stablecoins used for payments and traditional collateral, tokenized collateral will be required to meet certain standards to support financial stability.

She asserted that the Bank “aims to avoid mandating or prohibiting specific technologies.”  Nonetheless, she also emphasized that clarity on these topics and how they can operate under the UK’s EMIR rules will be crucial to ensure market confidence.

“To provide greater certainty, we will set out further policy later this year on how tokenised collateral can operate under the existing regulatory framework. Ensuring smoother movement of cross-border collateral requires a consistent international approach, so our policy will be shaped by engagement with industry and our international counterparts,” the executive director affirmed.

Regarding the third area of focus, the Digital Securities Sandbox and stablecoins within it, Mills detailed that the BoE is developing an assessment framework to determine a set of regulated stablecoins that meet high enough standards for use in the sandbox.

“As regulatory regimes for stablecoin issuers in the UK and internationally are still being developed, this assessment framework may not map exactly to future standards for what may be permitted in wholesale markets,” she stated. “However, (…) [it] will both ensure some degree of resilience for market participants, and aid transition to a future permanent regime for the use of stablecoins in wholesale markets.”

“The future is ambitious. But making the changes I outlined today (…) will support financial stability domestically and internationally.” Mills concluded.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

The post Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny appeared on BitcoinEthereumNews.com. The cryptocurrency world is buzzing with a recent controversy surrounding a bold OpenVPP partnership claim. This week, OpenVPP (OVPP) announced what it presented as a significant collaboration with the U.S. government in the innovative field of energy tokenization. However, this claim quickly drew the sharp eye of on-chain analyst ZachXBT, who highlighted a swift and official rebuttal that has sent ripples through the digital asset community. What Sparked the OpenVPP Partnership Claim Controversy? The core of the issue revolves around OpenVPP’s assertion of a U.S. government partnership. This kind of collaboration would typically be a monumental endorsement for any private cryptocurrency project, especially given the current regulatory climate. Such a partnership could signify a new era of mainstream adoption and legitimacy for energy tokenization initiatives. OpenVPP initially claimed cooperation with the U.S. government. This alleged partnership was said to be in the domain of energy tokenization. The announcement generated considerable interest and discussion online. ZachXBT, known for his diligent on-chain investigations, was quick to flag the development. He brought attention to the fact that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce had directly addressed the OpenVPP partnership claim. Her response, delivered within hours, was unequivocal and starkly contradicted OpenVPP’s narrative. How Did Regulatory Authorities Respond to the OpenVPP Partnership Claim? Commissioner Hester Peirce’s statement was a crucial turning point in this unfolding story. She clearly stated that the SEC, as an agency, does not engage in partnerships with private cryptocurrency projects. This response effectively dismantled the credibility of OpenVPP’s initial announcement regarding their supposed government collaboration. Peirce’s swift clarification underscores a fundamental principle of regulatory bodies: maintaining impartiality and avoiding endorsements of private entities. Her statement serves as a vital reminder to the crypto community about the official stance of government agencies concerning private ventures. Moreover, ZachXBT’s analysis…
Share
BitcoinEthereumNews2025/09/18 02:13
Witness Bitcoin’s Dramatic Plunge in A Volatile Crypto Market

Witness Bitcoin’s Dramatic Plunge in A Volatile Crypto Market

The new Fed chairman and geopolitical risks affect cryptocurrency outlook. Bitcoin fails to maintain key levels, hitting lowest since October 2023. Continue
Share
Coinstats2026/02/01 03:04
Smart Money Accumulates SUI as Weekly Chart Signals Expansion Phase Ahead

Smart Money Accumulates SUI as Weekly Chart Signals Expansion Phase Ahead

TLDR: SUI preserves its long-term ascending channel, signaling macro strength despite deep corrective phases  Sell-side liquidity sweeps near trendline support
Share
Blockonomi2026/02/01 03:25