UK Gives Bank of England New Stablecoin Innovation Mandate to Boost Digital Finance
The U.K. government plans to give the Bank of England a new secondary objective to support innovation in payments and digital money. Including stablecoins, tokenized finance and blockchain-based settlement systems.
Financial stability will remain the central bank’s primary responsibility. But the new mandate is intended to ensure regulation keeps pace with rapidly evolving financial technology and strengthens the U.K.’s competitiveness as a digital asset hub.
The proposal builds on the Bank’s developing stablecoin framework. Which includes rules for systemic sterling stablecoins and a temporary £40 billion issuance guardrail. While allowing up to 70% of backing assets to be held in short-term U.K. government debt. The change will be introduced through amendments to the Financial Services and Markets Bill. With House of Lords debates scheduled for September. The move signals a broader shift toward treating stablecoins and tokenized settlement as part of mainstream financial infrastructure. Rather than as a separate crypto market.
Clever Robot News Desk 28th July 2026
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