Stablecoin payments will be a priority for the Financial Conduct Authority in 2026, the regulator has revealed.

New growth measures which include support for UK-issued stablecoins to provide faster and more convenient payments have today been outlined by the FCA.

In a letter addressed to the Prime Minister, the FCA revealed it will be working on several initiatives next year aimed at boosting growth, one of which is to “finalise digital assets rules and progress UK-issued sterling stablecoins”.

To enable firms to experiment with the issuance of stablecoins, the regulator said it would open its regulatory sandbox for safe testing and to support innovative policy development.

The FCA also confirmed it is working closely with the Bank of England to develop the regulatory regime for stablecoins.

Chief executive of the FCA, Nikhil Rathi, said: “Supporting growth helps consumers, improving their financial resilience and providing more choice. Our reforms help the UK maintain its global competitive edge in our world-leading wholesale markets, attract international investment, and lead on innovation in financial services.

“We will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.”

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