The Bank of England has released a policy statement on sterling-denominated systemic stablecoins alongside a consultation paper of Draft Operational Standards, targeting finalization of the operational rules by the end of 2026. The framework mandates reserve asset allocation of 70% short-term UK government bonds and 30% non-interest-bearing Bank of England deposits. Limits on individual and corporate holdings will be scrapped, replaced with a temporary issuance cap of GBP 40 billion per systemic stablecoin product.

The Bank of England also stated that issuers of systemic stablecoins are prohibited from paying interest to holders, though rewards linked to payment activities may be offered. Redemption requests must be completed within 24 hours of receiving full submission. The central bank plans to launch a central bank liquidity facility, with further details to be disclosed in 2027. This consultation will close on 22 September 2026.