published<\/a> on Tuesday, ministers now want fiat\u2011backed stablecoins and tokenized bank deposits regulated under the same umbrella as existing payment services, rather than treated as a parallel crypto niche.<\/p>\nLondon targets post\u2011Brexit payments edge<\/h2>\n
Economic Secretary to the Treasury Lucy Rigby told the House of Lords Financial Services Regulation Committee that including stablecoins directly in payments rules would allow the UK to design \u201ca payments framework that facilitates both traditional payments and tokenized payments in a coherent and comprehensive way.\u201d That stance effectively revives a 2022\u201323 plan\u2014first floated under the previous government\u2014to amend the Payment Services Regulations so that sterling\u2011backed stablecoins used in UK payment chains are explicitly captured by law.<\/p>\n
Under the emerging model, stablecoins used as payment instruments will sit within an issuance regime that ties into the broader Financial Services and Markets Act cryptoasset framework, while systemic pound\u2011denominated stablecoins will fall under joint Bank of England and FCA supervision. In parallel, tokenized deposits\u2014commercial bank money issued on blockchain rails\u2014are being treated as a complementary pillar, giving banks a path to on\u2011chain money that preserves the existing two\u2011tier system.<\/p>\n
Stablecoins, tokenized deposits and a \u201cthird path\u201d<\/h1>\n
Bank of England officials have already started expanding the Digital Securities Sandbox to include both tokenized deposits and regulated stablecoins as settlement assets, allowing regulators to observe real\u2011world use cases before locking in a permanent regime. The Treasury\u2019s new integration plan builds on that work, with around \u00a31 million in fresh funding earmarked for fintech experiments that use these instruments in payments, treasury management, and cross\u2011border flows.<\/p>\n
<\/p>\n
Policy analysts note that, while global debates often pit central bank digital currencies against private stablecoins, the UK is quietly advancing a \u201cthird path\u201d that leans heavily on tokenized deposits as programmable, 24\/7 extensions of traditional bank money. As one recent industry brief put it, tokenized deposits are \u201cnot a new form of money\u201d but a new infrastructure layer, designed to keep credit creation and deposit guarantees inside the banking system even as settlement moves on\u2011chain.<\/p>\n
Taken together, the Treasury\u2019s unified framework, the Bank of England\u2019s systemic stablecoin consultation, and the FCA\u2019s 2026 focus on stablecoin payments suggest a coordinated bid to make the UK a preferred jurisdiction for regulated digital payment assets in the post\u2011Brexit landscape. If regulators can balance prudential safeguards with genuine room for experimentation, London\u2019s fintech sector may end up setting templates other financial hubs copy rather than compete against.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
The UK Treasury wants stablecoins and tokenized deposits regulated like payment services, backing the push with new rules, BoE coordination and \u00a31m for fintech pilots. Summary The UK Treasury plans…<\/p>\n","protected":false},"author":1,"featured_media":17943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-26506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=26506"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26506\/revisions"}],"predecessor-version":[{"id":26507,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26506\/revisions\/26507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/17943"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=26506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=26506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=26506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}