Bank of England Considers Exempting Corporates from Stablecoin Holding Limits
The Bank of England (BoE) is reportedly planning to exempt corporate entities from proposed stablecoin holding limits, signaling a major shift in how the UK intends to regulate digital assets and stablecoin usage in financial markets.
According to a Bloomberg report, the BoE is weighing exemptions for businesses later than pushback from industry leaders who warned that restrictive limits could stifle innovation and liquidity. The central bank’s initial proposal, published earlier this year, suggested a £20,000 cap for individuals and a £10 million cap for businesses holding fiat-backed stablecoins. However, this framework may now include carve-outs for corporates that require larger liquidity buffers to support payments and settlements.
Industry response and implications for UK fintech
The decision to reconsider these limits follows intense feedback from major fintech firms, crypto platforms, and institutional players. Many argued that such restrictions would make it hard for businesses to operate efficiently in digital payment systems, especially as stablecoins become a core mechanism for on-chain settlements and decentralized finance (DeFi) transactions.
Allowing corporate exemptions could position the United Kingdom as a more competitive hub for digital finance, especially compared to regions like Singapore and the European Union, which have implemented flexible regulatory frameworks that encourage innovation while ensuring consumer protection. Analysts suggest that a more adaptive approach could strengthen London’s position as a global fintech leader and attract international firms viewking regulatory clarity in digital asset markets.
Regulatory evolution and the BoE’s next steps
The Bank of England and the Financial Conduct Authority (FCA) have been jointly developing a comprehensive regulatory regime for stablecoins intended for use in the UK’s retail and wholesale payment systems. The upcoming framework aims to ensure that stablecoins maintain robust backing assets, liquidity management practices, and operational resilience standards equivalent to those in traditional banking systems.
Sources close to the consultation process say that corporate exemptions could be introduced in the next phase of public review expected later this year. The move would align with the BoE’s broader objective of integrating digital currencies securely into the UK’s financial ecosystem without undermining monetary policy or financial stability.
If approved, the exemption could enable corporations, financial institutions, and fintechs to hold and transact in larger volumes of stablecoins, unlocking new efficiencies for cross-border payments, remittances, and decentralized financial services. The change may also accelerate stablecoin adoption in institutional finance and assist bridge the gap between traditional banking and blockchain-based settlement networks.
As the stablecoin sector grows rapidly, central banks worldwide are balancing innovation with risk management. The BoE’s willingness to adapt its position demonstrates a pragmatic approach to fostering financial innovation while maintaining oversight.
With the final regulatory consultation expected later in 2025, the financial community will be closely monitoring how these potential exemptions shape the future of stablecoin regulation. The outcome could have lasting implications for the UK’s role in the global digital asset landscape, influencing both domestic adoption and international coordination on stablecoin standards.
