Bank Of England Reviews Stablecoin Cap Limits

Bank of England may reconsider stablecoin limits.

The Bank of England is set to review its broader domestic policy and rulemaking on stablecoins, particularly as it pertains to stablecoin balance restrictions for businesses and individuals.

This implies earlier mentions of exact balance caps and restrictions may be revised to suit the growing adoption of stablecoins as payment instruments. According to FT and during a Bristol visit, Deputy Governor Sarah Breeden had indicated that there are certain "benefits" to using stablecoins, especially since they act like "money".

Additionally, Sarah had expressed that the £10K - £20K holding caps for individuals, and up to £10M limits on businesses that were initially proposed in 2025 as part of an effort to embed stablecoins into UK society, now could be largely seen as "cumbersome operationally" from subsequent industry responses.

For those companies building in the digital asset space, there is a larger emphasis on introduction of clearer rules and regulations, as well as proper technical solutions, before deeper considerations are made into the specific holding allowances for regular people and institutions.

Raiku Founder and CEO Robin Nordnes told Stablecoin News:

"[T]he question isn't how much a household holds, but whether the settlement infrastructure underneath those stablecoins meets institutional standards. If we can get the rails right then the caps become a blunt tool for a problem that's already solved."

With regards to broader regulation efforts, HM Treasury in the UK has recently updated its stablecoin and digital asset guidance, while the FCA (Financial Conduct Authority) is continuing with their comprehensive roadmap to allow stablecoin licensing and issuing applications to be opened later this year.