Bank of England Stablecoins Could See New Exemptions for Firms

The Bank of England (BoE) is considering relaxing its proposed limits on corporate stablecoin holdings, according to Cointelegraph and Bloomberg. The move comes after strong feedback from industry groups. The BoE may allow certain firms to hold more stablecoins than originally proposed. This change shows that the central bank wants to balance financial safety with innovation in the growing digital asset market.

🏴󠁧󠁢󠁥󠁮󠁧󠁿 LATEST: Bank of England may relax proposed stablecoin caps on corporate holdings after industry pushback, signaling flexibility on exemptions for certain firms, per Bloomberg. pic.twitter.com/XuuNPlEwAE

— Cointelegraph (@Cointelegraph) October 8, 2025

What the Original Proposal Said

Earlier this year, the BoE suggested capping stablecoin holdings. Individuals would be limited to £20,000, while businesses could hold up to £10 million. The goal was to reduce risks to financial stability and reduce depending on privately issued digital money.

However, many critics argued that the limits were too strict. They said that the caps could slow down innovation and push companies to other countries with friendlier rules.

Industry Pushback and Possible Exemptions

After the proposal, crypto companies and financial institutions spoke up and  they need more stablecoins for daily operations. This includes managing cash flow and handling cross-border payments.

Bloomberg reports that the BoE may now give exemptions for such firms. This would let them hold more stablecoins than the general limit. The bank aims to keep the financial stability safe while letting businesses operate smoothly.

Global Context and Competition

The global stablecoin market has grown quickly. It is now worth more than $314 billion. In contrast, the UK’s market is much smaller. Pound-pegged stablecoins make up less than $1 million in circulation.

This shows that the UK faces pressure from other regions. The United States and the European Union are moving forward with clearer rules for digital assets. If the UK wants to stay competitive, it may need to be more flexible with its regulations.

BoE’s Changing Approach

BoE Governor Andrew Bailey has warned about the risks of private stablecoins. He said they could affect financial stability and the effectiveness of monetary policy.

But recent statements suggest a more open approach. The bank now sees that stablecoins can help the financial system. They can improve payment efficiency and support innovation in financial services.

The BoE is expected to release a consultation paper soon. This paper will explain the rules for stablecoins and clarify how exemptions will work.

What This Means for the Market

If the BoE allows exemptions, companies may be able to work more freely in the UK. This could attract crypto firms and increase the investment in pound-pegged stablecoins.

It may also make the UK more competitive globally. Other countries have been moving fast to regulate digital assets. A balanced approach could help the UK get a stronger position in the crypto market.

Investors and companies are closely watching. They want to understand how much freedom they will have with stablecoin holdings. The BoE’s decisions in the coming months will probably shape the future of digital finance in the UK.

The Future of Stablecoins in the UK

Bank of England stablecoin move is showing that it can listen to industry problems. By possibly relaxing stablecoin caps, it balances safety with growth. This move could encourage innovation while keeping financial stability together. The crypto sector in the UK is waiting to see how this approach will unfold.