The Bank of England has eliminated the primary usability restriction on its proposed sterling stablecoin by removing individual and business holding limits in a June 22, 2024 policy statement and draft Code of Practice.
Revised Regulatory Framework
The new draft replaces earlier wallet‑level caps with a temporary issuance ceiling of £40 billion for each systemic pound token. It also raises the proportion of backing assets that issuers may allocate to interest‑bearing securities, giving the stablecoin a more flexible funding structure.
Under the November 2025 proposal, the Bank had contemplated per‑coin limits of £20,000 for private users and £10 million for corporate accounts. Those thresholds have now been removed, allowing ordinary investors and businesses to hold larger balances without breaching regulatory caps.
Market Impact and Growth Controls
While the removal of holding limits makes the token more viable as a payments infrastructure, the £40 billion guardrail ensures that any single systemic stablecoin will not dominate the market before the Bank assesses its systemic risk. This rationing model keeps the growth of regulated pound tokens in check, protecting credit access and preventing rapid deposit outflows from traditional banks.
Consultation on the draft rules ends on September 22, 2026, with the Code of Practice expected to be finalized by the close of that year. The Bank plans to permit regulated stablecoins to operate in the UK starting in 2027, retaining the authority to slow expansion if crypto investors threaten banking stability.