Bank of England publishes draft rulebook for systemic stablecoin issuers

The Bank of England has released a policy statement and draft Code of Practice setting out obligations for stablecoin issuers deemed systemically important. The publication moves sterling-denominated issuance closer to a full prudential regime, likely capturing any issuer whose failure could disrupt UK payment systems or financial stability.

The draft rules represent the first concrete articulation of how the Bank will supervise systemic stablecoins under powers granted by Parliament. Firms meeting the systemic threshold will face capital, liquidity, redemption-at-par, and operational-resilience requirements comparable to those applied to payment system operators.

The consultation window is implicit in the release of a draft code, suggesting the Bank expects to finalise the framework within months rather than years. For any issuer planning material sterling volumes, the consultation looks like the last chance to shape the rulebook before it hardens into live supervision.