FCA Selects Revolut and Others for U.K. Stablecoin Sandbox as Industry Debates BoE Caps

The U.K.’s Financial Conduct Authority (FCA) has selected Revolut, Monee Financial Technologies, ReStabilise and VVTX to test stablecoin issuance within its Regulatory Sandbox, marking a significant step toward finalizing the country’s long-awaited crypto and stablecoin framework. The initiative will allow these firms to trial stablecoin products in real-world conditions under strict regulatory safeguards, as the U.K. moves closer to establishing comprehensive digital asset rules.

According to the FCA, the sandbox will focus on stablecoin issuance and key use cases such as payments, wholesale settlement and crypto trading. Testing is scheduled to begin in the first quarter of 2026, with findings expected to inform the final stablecoin regulations set for release later in 2026. The regulator aims to ensure that U.K.-issued stablecoins can be trusted for everyday payments and broader financial transactions.

Matthew Long, director of payments and digital assets at the FCA, said the initiative supports trusted stablecoin issuers while aligning with the government’s National Payments Vision. The move reflects the U.K. government’s ambition to position London as a global hub for digital assets and financial innovation.

However, industry leaders argue that regulatory uncertainty and proposed limits from the Bank of England (BoE) could undermine competitiveness. In November 2025, the BoE proposed stablecoin holding caps ranging from £5,000 to £20,000 for individuals and £1 million to £10 million for businesses. Coinbase CEO Brian Armstrong criticized the proposal, warning it could restrict innovation and weaken the U.K.’s standing in the global digital economy. A public petition calling for reconsideration of the caps has gathered over 81,000 signatures.

While Parliament is expected to approve broader crypto legislation later this year, the rules are unlikely to take effect until 2027. Critics say the slow regulatory timeline risks putting the U.K. behind faster-moving jurisdictions in the global stablecoin market.