The Bank of England plans to release a draft regulation for systemic stablecoins next month and finalize it within the year.

On May 20, Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, stated in a speech at City Week 2026 in London that tokenization will be a future strategic focus, aiming to build a UK financial system that includes regulated stablecoins. The Bank of England plans to release a draft regulation for systemic stablecoins next month and finalize it within the year, with a temporary cap on the total issuance of stablecoins if necessary. The central bank encourages commercial banks to issue tokenized deposits and upgrade retail payment infrastructure to support interbank use. The Bank of England and the FCA have advanced tokenized securities pilots through the Digital Securities Sandbox, with 16 institutions, including Euroclear, HSBC, and LSEG, currently preparing for launch by the end of 2026. The central bank is still evaluating the digital pound (CBDC) proposal and supports the government's Digital Gilt tokenized government bond project.