Bank of England Drops Proposed Holding Limits for Regulated Sterling Stablecoins

The Bank of England has removed proposed holding limits of £20,000 per household and £10 million per business for regulated sterling stablecoins, while setting a £40 billion cap on each systemic sterling stablecoin in the UK. According to NS3.AI, the changes were outlined in a June 22 policy statement. The policy framework also reduced the required unremunerated deposit share that stablecoin issuers must hold at the Bank of England to 30%. Sterling-denominated stablecoins account for about 0.5% of the global stablecoin market, which is valued at around $315 billion.