ChainCatcher report: During the London FinTech Festival, the UK Treasury announced a regulatory framework aimed at bringing stablecoins and tokenized deposits under the same regulatory regime as traditional payment services. The plan proposes regulating stablecoins used for payments under an upcoming issuance regime, expanding the Financial Conduct Authority’s (FCA) oversight of open banking, and exploring regulatory adjustments for payment activities conducted by AI agents. The proposal also seeks to reduce administrative burdens on businesses offering stablecoin payment services through new legislation. The UK Treasury also announced the appointment of Chris Woolard CBE, partner at EY and former interim CEO of the FCA, as Wholesale Digital Markets Enabler, tasked with advancing the development of a tokenized wholesale financial system. The government pledged £1 million (approximately $1.35 million) in funding, starting in April, to support the Financial Innovation and Technology Hub. City Minister Lucy Rigby stated that the initiative aims to build a secure, competitive payment ecosystem capable of seizing opportunities presented by technological change. The UK government recognizes the transformative potential of digital assets and blockchain technology to reshape how consumers and businesses interact with financial services.
UK Announces Regulatory Framework for Stablecoins and Tokenized Deposits
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Summary
The UK Treasury unveiled a compliance framework for stablecoins and tokenized deposits during London Tech Week, bringing them in line with traditional payment services. The plan includes regulating payment-focused stablecoins under a new issuance regime, extending FCA oversight to open banking, and reviewing rules for AI-agent payments. New legislation aims to reduce administrative burdens for stablecoin firms. Chris Woolard CBE, former interim CEO of the FCA, was appointed as wholesale digital markets promoter to advance tokenized systems. The government will fund the Financial Innovation and Technology Centre with £1 million starting April 2026 to support liquidity and the development of crypto markets.
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