On February 25, 2026, the UK’s Financial Conduct Authority (FCA) officially selected four companies to join a dedicated stablecoin cohort within its Regulatory Sandbox. Chosen from 20 applicants, these firms will test stablecoin issuance and usage in a controlled environment — with results directly shaping the UK’s final regulatory framework, expected by end-2026.
Four Companies to Shape the UK’s Stablecoin Regulation
Selected from 20 applications submitted between November 2025 and January 2026, the four chosen firms span a broad range of use cases — from retail payments to institutional settlement, DeFi, and corporate treasury management.
The Four Selected Companies
| Company | Description | Primary Use Case |
|---|---|---|
| Monee Financial Technologies | Stablecoin infrastructure linked to settlement and digital securities | Settlement & digital securities |
| ReStabilise | Institutional stablecoin issuance, custody, and treasury management | FX settlement, asset management, treasury |
| Revolut | GBP stablecoin backed 1:1 by sterling assets | Retail payments and crypto |
| VVTX | Payment ecosystem on a proprietary Layer 1 blockchain with the GBPV stablecoin | Payments, DeFi & settlement |
Revolut in the Spotlight: A Credibility Boost for the Sandbox
The inclusion of Revolut — one of Europe’s largest neobanks with nearly $35 billion in customer assets — lends significant credibility to this initiative. The fintech giant had already been working on a stablecoin project since 2024, and this selection marks its formal entry into the regulated UK ecosystem. Its GBP stablecoin will be backed 1:1 by sterling assets, targeting retail payments and crypto transactions.
VVTX stands out with a full-stack infrastructure approach: its proprietary Layer 1 blockchain is specifically designed to bridge traditional payment rails (Web2) with Web3 infrastructure, centered around its sterling-pegged GBPV stablecoin.
An Ambitious Regulatory Timeline
The sandbox program is just one milestone in a clearly defined legislative process. Key dates to watch:
- Q1 2026 — Live testing begins in the sandbox
- Summer 2026 — FCA publishes Policy Statements
- September 2026 — Authorization portal opens under the new crypto regime
- End of 2026 — Final stablecoin regulatory framework completed
- October 2027 — Full crypto regulatory regime comes into effect
The findings from sandbox testing will feed directly into the final rule-writing process by HM Treasury, the FCA, and the Bank of England.
Industry Backlash: The Bank of England’s Proposed Caps Draw Fire
On the same day as the FCA announcement, Coinbase CEO Brian Armstrong took to X to sharply criticize the Bank of England’s proposed stablecoin rules, which include:
- An individual holding cap of £20,000 (~$26,350)
- A corporate holding cap of £10 million (~$12.7 million)
- A requirement to hold 40% of reserves in non-interest-bearing central bank accounts
Armstrong called these measures a « drag on innovation », warning that the UK risked falling behind in the global digital economy. British MPs have also raised concerns, warning the rules could « stifle innovation, limit adoption and push activity overseas. » Coinbase’s stablecoin-related revenue reached $1.35 billion in 2025, underscoring the company’s strong stake in this debate.
Stand With Crypto UK Petition Surpasses 80,000 Signatures
Civic mobilization is gathering momentum. The petition launched by Stand With Crypto UK — a Coinbase-backed advocacy group — has surpassed 80,000 signatures and is closing in on the 100,000 threshold required to trigger a parliamentary debate. The deadline to sign is March 3, 2026.
The petition calls for three concrete government actions: establishing a pro-innovation regulatory framework for stablecoins and tokenization, exploring government use cases for blockchain, and appointing a « blockchain & crypto czar ». The House of Lords has already opened a dedicated parliamentary inquiry into stablecoins in response to this campaign.
The UK in the Global Stablecoin Race
The international competitive landscape leaves little room for complacency. The European Union already has MiCA (Markets in Crypto-Assets) in place, while the United States under the Trump administration has embraced a firmly pro-stablecoin stance, ruling out any CBDC. The global stablecoin market has now surpassed $180 billion.
For the City of London, sterling-backed stablecoins represent a major strategic opportunity: reinforcing the pound’s international standing and attracting global digital finance players. Matthew Long, the FCA’s Director of Payments and Digital Assets, emphasized the goal of ensuring UK stablecoin issuers can « be trusted for payments, settlement and trading. »
Verdict: A Pivotal Moment — But the Outcome Remains Open
The FCA’s initiative marks an undeniable turning point: the shift from consultation to real-world experimentation with named companies. The success of this sandbox cohort could determine the UK’s ability to attract stablecoin issuers and blockchain firms for years to come.
However, the outcome will hinge on the final negotiation between the FCA, the Bank of England, and HM Treasury on critical issues such as holding caps and reserve requirements. If the final rules prove too restrictive, companies may choose more welcoming jurisdictions — a risk made concrete by Gemini’s recent withdrawal from the UK market.
Source: FCA – Regulatory Sandbox stablecoins cohort, February 25, 2026
