Bank of England backs down on strict stablecoin holding limits, sets $50 billion issuance cap (opens original article in a new tab)

The Bank of England reversed its plan to limit individual and corporate stablecoin holdings, instead implementing a £40 billion issuance cap for systemic stablecoins and adjusting reserve requirements.

• Bank of England scrapped plans to cap individual and corporate stablecoin holdings
• BOE set a £40 billion ($50.6 billion) issuance cap for systemic stablecoins
• Regulators reduced required non-interest-bearing central bank deposits backing stablecoins to 30%
• Issuers can invest 70% of reserves in short-term UK government debt but cannot pay interest to coin holders
• BOE plans to phase out the guardrail as the market matures