FCA Selects Four Firms to Test Stablecoin Innovation in UK

The UK's Financial Conduct Authority (FCA) has launched a testing program for stablecoins, selecting four companies to participate in a live environment.

Monee Financial Technologies, ReStabilise, Revolut, and VVTX have been chosen from a pool of 20 applicants to test their stablecoin services under proposed regulations.

The FCA's Regulatory Sandbox program allows firms to trial their products with appropriate safeguards in place. This will help the authority assess its proposed policy on stablecoins and ensure that future rules are clear, effective, and support responsible innovation.

The testing focus will be on stablecoin issuance, with each firm's proposal representing a different use case, including payments, wholesale settlement, and crypto trading.

Matthew Long, the FCA's director of payments and digital assets, stated that the program is aimed at supporting UK stablecoin issuers to ensure they can be trusted for various financial transactions. The testing will benefit consumers and help deliver the FCA's strategy and the Government's National Payments Vision.