TLDR:
- FCA selects four firms to test stablecoin issuance under proposed UK rules.
- Sandbox trials begin Q1 2026 to assess payments, settlement, and trading use cases.
- Findings will shape final UK stablecoin rules ahead of October 2027 regime.
- Firms receive guidance from FCA specialists to ensure safe and compliant testing.
UK FCA stablecoin Regulatory Sandbox is set to launch in Q1 2026, selecting four firms to test stablecoin issuance under proposed rules.
Monee, ReStabilise, Revolut, and VVTX will participate in the controlled trials, chosen from a pool of 20 applicants.
The Sandbox aims to evaluate how stablecoin services operate in real-world conditions while shaping the UK’s final regulatory framework. Findings will inform rules ahead of the wider crypto regime scheduled for October 2027.
Firms Selected for Stablecoin Testing
The FCA’s Sandbox allows firms to trial stablecoin issuance safely with oversight from regulators. The selected participants cover diverse use cases including payments, wholesale settlement, and crypto trading.
Each company will receive guidance from FCA specialists throughout the testing period to ensure regulatory alignment.
Monee and ReStabilise will focus on payment-related stablecoins, exploring operational models under the proposed safeguards.
Revolut and VVTX will test solutions linked to settlement and trading infrastructures. The trials aim to provide practical insights into how stablecoins function under draft rules.
The Sandbox framework ensures that firms can operate in live conditions with appropriate consumer protections. The FCA will monitor risk management, compliance, and governance practices while reviewing operational performance. Feedback from these exercises will inform adjustments to policy before finalisation.
Matthew Long, director of payments and digital assets at the FCA, stated that the initiative supports trusted stablecoin use for payments, settlement, and trading.
The regulator emphasized that testing contributes to the UK’s National Payments Vision and broader financial innovation strategy.
Timeline and Regulatory Preparations
The FCA confirmed that consultations on stablecoin issuance, cryptoasset custody, and related conduct standards are now largely complete.
Policy Statements defining the future regime are expected later in 2026. This timeline aligns with the launch of the full crypto regulatory framework in October 2027.
Past consultation papers covered prudential requirements, market abuse controls, and the application of FCA Handbook rules.
These documents guide the operational and legal standards for firms participating in the Sandbox. Firms are expected to demonstrate compliance with these frameworks during testing.
All UK firms offering crypto activities must apply for authorisation once the regime goes live. The FCA will open the application gateway in September 2026, giving companies time to prepare.
Authorisation-focused webinars are also being hosted, including sessions on anti-money laundering requirements.
The Prudential Regulation Authority released guidance on deposit, e-money, and regulated stablecoin innovations.
Together, these measures support responsible testing while preparing the market for the broader regulatory environment.
The FCA stablecoin Regulatory Sandbox provides a structured pathway for innovation under careful supervision.