Summary
The FCA published PS26/10 (Stablecoin Issuance) on June 30, 2026, finalizing rules for UK-issued qualifying stablecoins. The K-SII capital coefficient was halved from 2% to 1% following industry feedback. The authorization gateway opens September 30, 2026, with applications accepted until February 28, 2027. The mandatory regime takes effect October 25, 2027. Key changes from consultation: simplified backing asset composition requirement (removed redemption forecasting), 5% excess allowed in backing pool, limited intragroup custody permitted, T+1 redemption timeline now starts when stablecoin is received in issuer's wallet (not on redemption request). The FCA also published PS26/11 (regulated cryptoasset activities), PS26/12 (prudential regime), PS26/13 (Handbook application), and PS26/9 (A&D and MARC) as part of the comprehensive cryptoasset regime.
Key Points
- K-SII coefficient halved from 2% to 1% of average stablecoins in issuance
- Authorization gateway: September 30, 2026 to February 28, 2027
- Mandatory regime: October 25, 2027
- Backing assets: core (on-demand deposits + short-term government debt) and expanded (long-term government debt, PDCNAV MMFs, repos)
- On-demand deposit requirement: 5% of backing pool
- Core backing asset requirement: higher of 5% or highest daily redemption % in past 180 days
- T+1 redemption from receipt of stablecoin in issuer's wallet
- No pass-through of interest/income from backing assets to tokenholders
- Statutory trust required for backing assets
- 20% limit on intragroup custody of backing assets
- 5% excess allowed in backing pool after internal reconciliation
- PMR for stablecoin issuers: 350,000
- ILAR (Issuer Liquid Asset Requirement): based on price risk of non-cash backing assets