BOE Ditches Strict Stablecoin Holding Limits in Favor of £40B Cap

The Bank of England has reversed its plan to cap individual and corporate stablecoin holdings at £20,000 ($27,000) and £10 million respectively. Instead, it will temporarily limit the total circulation of any single systemic stablecoin to £40 billion ($50.6 billion).

This move follows pressure from a U.K. House of Lords committee and the crypto industry, which argued that the original plan would severely stifle innovation.

The BOE has also relaxed its requirements for stablecoin issuers, allowing them to allocate up to 70% of their reserves into yield-generating short-term U.K. government debt (T-bills) with maturities under six months.