Bank of England revises stablecoin reserve rules, allowing 60% in UK gilts

The Bank of England has adjusted parts of its proposed stablecoin regime, easing a key reserve requirement first laid out in its 2023 framework. Under the amended approach, issuers may place up to 60% of reserves in short-term UK government bonds while holding 40% in central bank funds, alongside transitional relief and a liquidity backstop.