UK’s Stablecoin Revolution: FCA Picks First Testers for 2026 Rules

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UK Moves Toward Stablecoin Rules as FCA Picks First Testing Cohort

Key Takeaways

  • 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. 

This plan is a step towards the country’s goal of fully regulating stablecoins by the middle of 2026.

This announcement shows the UK is speeding up its work to become a leading, well-regulated center for digital assets, and it anticipates that stablecoins will be a key part of how we pay for things in the future.

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 lets companies test their ideas in a real-world environment, but with safeguards in place to protect customers and the financial system.

What Will Be Tested

As a researcher on this project, we’re currently diving into real-world applications of stablecoins. We’re testing things like issuing stablecoins, using them for everyday retail and larger wholesale payments, improving how transactions settle, and integrating them with existing crypto trading platforms. These trials are incredibly important because the data we collect will directly inform the final regulations for stablecoins in the UK, which are expected to be published around late 2026.

The FCA is using controlled testing to find and address potential problems – like operational risks, consumer safety issues, and technical difficulties – before new rules are officially put in place.

Timeline and Regulatory Path

Testing in a limited environment will start in early 2026. Then, starting in October 2027, any company issuing stablecoins in the UK will need to be officially approved under the new rules.

This plan supports the government’s goals for modernizing payments and the Financial Conduct Authority’s commitment to encouraging new ideas while protecting the financial system. Leaders have often stated that stablecoins have the potential to be a reliable way to pay digitally, but only if they are carefully monitored and consumers are protected.

This article is just for informational and educational purposes, and shouldn’t be taken as financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Before you make any investment decisions, be sure to do your own research and talk to a qualified financial advisor.

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2026-02-25 21:30