UK FCA to Prioritize Stablecoin Support and Testing in 2026

The UK's Financial Conduct Authority (FCA) is prioritizing stablecoin payments by 2026, opening its regulatory sandbox for firms aiming to launch stablecoin products. This move is part of the FCA's broader market growth initiatives.

The FCA plans to expedite approval processes and digitalize financial services to enhance trade and international competitiveness.
FCA chief Nikhil Rathi has committed to a bolder risk appetite while ensuring consumer protection and market integrity.

Stablecoins and Digital Asset Regulation

The FCA will finalize rules for digital assets and support UK-issued sterling stablecoins in 2026.
Reform rules in traditional finance could impact crypto and digital assets, including updated venture capital regulations and pension charge cap consultations.
Plans include launching variable recurring payments, focusing on SME lending, and fast-tracking startups and IPO applications.

The FCA aims to expand its global digital asset influence by supporting AI use cases and enabling the tokenization of funds in the UK's asset management sector. The Bank of England supports these stablecoin initiatives.