Bank of England Publishes Policy Statement and Draft Code of Practice for Systemic Stablecoins

The Bank of England released a policy statement and draft Code of Practice for sterling-denominated systemic stablecoin issuers, confirming its policy direction and consulting on draft rules. Key revisions include replacing proposed individual holding limits with a temporary issuance guardrail of £40 billion per systemic stablecoin product and increasing the allowable yield on reserve assets by shifting the mandatory composition to up to 70% short-term gilts and 30% central bank deposits. The consultation closes on September 22, 2026, with final rules expected by year-end, aiming for a regulated sterling stablecoin regime to go live in 2027.