PANews, May 20: Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, stated during her speech at City Week 2026 in London that tokenization will be a strategic priority for the future, aiming to build a UK financial system incorporating regulated stablecoins. The Bank of England plans to release a draft regulatory framework for systemic stablecoins next month, with finalization expected this year; temporary caps on the total supply of stablecoins may be imposed if necessary. The Bank encourages commercial banks to issue tokenized deposits and upgrade retail payment infrastructure to support cross-bank usage. The Bank of England and the FCA have advanced tokenized securities pilots through the Digital Securities Sandbox, with 16 institutions—including Euroclear, HSBC, and LSEG—preparing to launch by the end of 2026.
The UK's BoE to Release Systemic Stablecoin Regulatory Draft Next Month
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Summary
The UK’s BoE will release a draft framework for systemic stablecoin regulation next month, with a final version expected by year-end. Deputy Governor Sarah Breeden highlighted tokenization as a priority at City Week 2026. The BoE may also impose temporary limits on stablecoin issuance. The draft will cover compliance with CFT (Countering the Financing of Terrorism) requirements.
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