FCA Finalizes UK Qualifying Stablecoin Rules on Backing, Redemption and Yield
Jul 27, 20262 sources
Key Takeaways
- 01FCA Policy Statement PS26/10, published June 30, 2026, finalizes core rules for UK-issued qualifying stablecoins under the UK cryptoasset regime.
- 02Issuers must fully back every qualifying stablecoin at minting, including tokens held by the issuer; the FCA will separately consult on statutory-trust terms for backing assets.
- 03The FCA maintained conservative reserve rules, rejecting broader permitted-asset categories and multi-currency reserve pools, while allowing tokenised versions of permitted assets.
- 04The final framework allows a 5% excess backing buffer and intragroup custody of up to 20% of backing assets, subject to exceptions, and adjusts redemption timing to accommodate KYC checks.
- 05Issuers and third parties cannot pass interest or yield generated by backing assets to stablecoin holders; a separate regime will govern systemic stablecoins.
FACTS: The UK Financial Conduct Authority (FCA) has finalized core rules for UK-issued qualifying stablecoins, moving the United Kingdom’s new cryptoasset regime from a general regulatory initiative into a detailed operating framework for issuers. Policy Statement PS26/10, published on June 30, 2026, establishes requirements covering issuance and redemption, backing assets, custody and safeguarding, disclosures, outsourcing, and payments to token holders. A separate framework will apply to stablecoins that are designated systemic.