UK Moves Toward Stablecoin Rules as FCA Picks First Testing Cohort
The Financial Conduct Authority (FCA) has unveiled four companies selected to join its dedicated stablecoin cohort within the UK’s Regulatory Sandbox, marking a major step toward building a formal framework for digital payments.
- The FCA has selected four firms to test stablecoin models within its Regulatory Sandbox.
- Live trials will inform final stablecoin rules expected later in 2026.
- Testing will cover issuance, payments, settlement, and trading use cases.
- Full authorization for issuers will become mandatory under the permanent regime in 2027.
The initiative forms part of the country’s broader plan to introduce comprehensive stablecoin regulation by mid-2026.
The move signals that the UK is accelerating efforts to position itself as a regulated hub for digital assets, with stablecoins expected to play a central role in future payment infrastructure.
Selected Firms for Live Testing
The FCA selected four participants from a pool of 20 applicants:
- Revolut will test its stablecoin-related plans within the sandbox environment.
- Monee Financial Technologies will focus on issuance models and service performance.
- ReStabilise has been chosen to pilot use cases aligned with the proposed regulatory framework.
- VVTX will participate in live infrastructure testing for stablecoin operations.
The sandbox allows firms to operate under real-market conditions while remaining within defined regulatory guardrails designed to protect consumers and financial stability.
What Will Be Tested
The cohort will explore several practical use cases, including stablecoin issuance, retail and wholesale payments, settlement mechanisms, and crypto trading integration. These live trials are expected to generate data that will directly shape the final version of the UK’s stablecoin rules, scheduled for release later in 2026.
By allowing controlled experimentation, the FCA aims to identify operational risks, consumer protection concerns, and technical challenges before the permanent regime is enacted.
Timeline and Regulatory Path
Sandbox testing is expected to begin in the first quarter of 2026. Once the full regulatory framework becomes effective in October 2027, all stablecoin issuers operating in the UK will be required to obtain formal authorization under the new regime.
The initiative aligns with the government’s broader National Payments Vision and the FCA’s strategic objective to foster innovation while maintaining market integrity. Officials have repeatedly emphasized that stablecoins could become a trusted digital payment instrument – provided robust oversight and consumer safeguards are in place.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
