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Bank of England to Open Systemic Stablecoin Applications by Year-End

Bank of England officials said stablecoins are treated as a new form of money, with payment-focused systemic issuers under central bank oversight; they also noted that 99% of global stablecoins are dollar-denominated.

Fact Check
All three core elements of the claim are directly corroborated by authoritative sources. First, the 'new form of money' framing is explicitly attributed to BoE executive Sasha Mills in Decrypt (May 13, 2026) and corroborated by multiple outlets. Second, the systemic stablecoin regime placing payment-focused issuers under central bank oversight is confirmed by the BoE's own November 2025 consultation paper and the March 2026 Parliamentary oral evidence from Breeden and Mills. Third, the 99% dollar-denominated statistic is confirmed verbatim in the UK Parliament Financial Services Regulation Committee oral evidence (March 11, 2026), where Mills stated 'Right now, as you know, 99% of stablecoins are denominated in US dollars.' The year-end application timeline is also confirmed in the Parliamentary testimony. The Reuters Japan article from May 14, 2026 adds further contemporaneous context. No conflicting evidence was found.
Summary

Bank of England officials said the central bank views stablecoins as a new form of money and plans to open applications for systemic stablecoins by the end of the year. Under the UK framework, stablecoins used widely for payments will be regulated by the Bank of England, while other stablecoins will fall under the Financial Conduct Authority. Officials also said 99% of global stablecoins are dollar-denominated, underscoring the current market concentration as the UK finalizes its regulatory approach.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically by being linked to a fiat currency or other reserve asset.
  • Systemic stablecoin: A stablecoin considered large or important enough to affect payment systems or broader financial stability, leading to stricter oversight.
  • Financial Conduct Authority: The United Kingdom financial regulator responsible for supervising financial markets and firms outside the Bank of England’s systemic stablecoin remit.