BoE softens stance on stablecoins
The Bank of England has shifted to a 'more friendly stance' on stablecoins, per Deputy Governor Sarah Breeden, a social report said. That policy pivot could open new advisory work around payments, tokenized assets and compliance offerings for banks and fintechs targeting fiat‑linked digital products.
Deputy Governor Sarah Breeden outlined) a shift toward a more pragmatic approach to tokenised payments in a September 3, 2025 BoE speech and told lawmakers on March 11, 2026 she’s “genuinely open” to amending earlier proposals. msn.com The Bank of England published) a formal consultation paper on November 10, 2025 setting out a proposed regulatory regime for sterling‑denominated systemic stablecoins. bankofengland.co.uk One concrete policy pivot under discussion would let systemic stablecoin issuers hold part of their reserve backing in a defined subset of high‑quality liquid assets (HQLA), a change the BoE said it will consult on “later this year.” paymentexpert.com Total stablecoin supply has expanded above the $300 billion mark in early March 2026, with on‑chain trackers reporting roughly $315–320bn of circulating stablecoins. defillama.com After industry pushback the BoE signalled it may revisit proposed holding caps, with Bloomberg reporting on March 11, 2026 that officials are open to alternative safeguards and Reuters noting Breeden’s testimony before a House of Lords committee the same day. bloomberg.com Commercial momentum already exists: Goldman Sachs and BNY Mellon launched a tokenised money‑market fund solution in July 2025, J.P. Morgan’s Project Guardian has run tokenisation proofs of concept, and UBS has marketed a UBS Tokenize service — all cited examples of advisory and origination work banks can scale if the BoE finalises a gentler sterling framework. goldmansachs.com Legal and capital‑markets advisory demand is explicit in law‑firm and industry briefings, with Mayer Brown and PwC outlining how the BoE’s proposed rules would reshape custody, prudential treatment and commercial issuance for banks and fintechs. mayerbrown.com
