The Financial Conduct Authority (FCA) will enable further experimentation with stablecoins through its regulatory sandbox, supporting innovative policy development.
A set of new growth measures for 2026, promoting a safer environment for financial innovation in the UK, was set out in a recent letter to the Prime Minister, focusing on stablecoin issuances.
“Our reforms help the UK maintain its global competitive edge in our world-leading wholesale markets, attract international investment, and lead on innovation in financial services,” said Nikhil Rathi, chief executive of the FCA.
“We will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.”
In the letter, the regulator said it will “finalise digital assets rules and progress UK-issued sterling stablecoins” as part of its efforts to accelerate digital innovation and strengthen priority areas.
Key initiatives in the push involve unlocking capital investment and liquidity through PISCES, described by the regulator as a “groundbreaking” private stock market.
The first Supercharged Sandbox, in partnership with Nvidia, will also contribute to digital innovation, aimed at helping firms safely test artificial intelligence solutions.
“Supporting growth helps consumers, improving their financial resilience and providing more choice,” added Rathi.
