TechFlow news: On January 29, according to Cryptobriefing, the Bank of England will prioritize advancing systemic stablecoin mechanisms, clarifying tokenized collateral policies under the UK’s EMIR framework, and expanding the scope of its digital securities sandbox in 2026. Sasha Mills, Executive Director for Financial Market Infrastructure at the Bank of England, stated that the coming year will “fundamentally shape the UK’s digital finance future.”
Under the proposed stablecoin framework, systemic issuers would gain access to deposit accounts at the Bank of England and could receive liquidity support. The backing structure for stablecoins would consist of 60% short-term UK government gilts and 40% deposits at the Bank of England. Additionally, temporary holding limits are under consideration—£20,000 for individuals and £10 million for corporations.
The Bank of England plans to finalize the systemic stablecoin mechanism by year-end and expand the digital securities sandbox to include regulated stablecoins in wholesale settlement testing.
