The Financial Conduct Authority (FCA) has announced that four new participants will join its stablecoin sandbox project. The participants include Revolut, a fintech firm, as well as Monee Financial Technologies, ReStabilise, and VVTX. The sandbox is designed to test the use of stablecoins in real-world conditions, with a focus on crypto trading and payments.
The FCA's stablecoin sandbox is an ongoing project that aims to support UK stablecoin issuers in ensuring their products can be trusted for payments, settlement, and trading. Matthew Long, the FCA's director of payments and digital assets, stated that the project will benefit consumers and financial transactions, helping to deliver the FCA's strategy and the government's National Payments Vision.
The UK is attempting to close the gap with the US in terms of stablecoin adoption. According to data from DefiLlama, the collective value of sterling-based stablecoins is worth just under $5 million. In contrast, stablecoins denominated in US dollars are worth over $307 billion. The British government is keen to support growth while maintaining consumer protection and market integrity.