The Financial Conduct Authority (FCA) has introduced a stablecoin-specific cohort within its Regulatory Sandbox, designed for firms developing or issuing stablecoins.
This new cohort complements the FCA’s wider innovation initiatives, including the Digital Securities Sandbox, by providing a supervised environment for testing blockchain-based financial products under the UK’s evolving regulatory framework.
According to the FCA, “Stablecoins are increasingly important in crypto asset markets and could drive new ideas in financial services, with potential uses for both retail and wholesale customers.”
The cohort is aimed at firms preparing to issue stablecoins in the UK under the forthcoming regulatory regime, as well as companies ready to trial their stablecoin models and contribute to shaping the future.
Participants in the FCA’s stablecoin sandbox can test their products in a controlled environment, either live with consumers or using firm data.
They will receive guidance and feedback from Innovation Case Officers to refine these solutions.
These insights will help to shape the FCA’s future regulatory policy.
Applications for the cohort opened on Wednesday 26 November 2025, with the FCA setting a deadline of 11:59pm on Sunday 18 January 2026.
Previous consultations (CP25/14 and CP25/25) have set out proposed rules and guidance for issuers, according to the regulator.
