The Bank of England has called for stronger coordination between the United Kingdom and the United States on the rollout of stablecoin regulations. Deputy Governor Sarah Breeden said both nations are entering a critical phase of digital-asset policy and that close alignment will help protect global financial stability while enabling responsible innovation.
Breeden noted that the U.K. and U.S. share similar priorities in ensuring that stablecoins are fully backed, transparent, and interoperable with existing banking systems. She emphasized that regulatory consistency across major economies will be essential to prevent market fragmentation and to support cross-border payments powered by digital assets.
The remarks came as the Bank of England prepares to publish its stablecoin framework later this month. The proposal will define reserve requirements, redemption rights, and risk-management obligations for issuers offering sterling- or dollar-denominated tokens. The central bank has confirmed that the framework is designed to complement U.S. Treasury and Federal Reserve guidance on reserve-backed digital currencies.
Breeden explained that stablecoins could play a significant role in modernizing settlement infrastructure if properly regulated. She warned, however, that uncoordinated oversight could lead to arbitrage risks and liquidity imbalances between financial jurisdictions. By establishing joint standards, regulators aim to maintain market confidence while supporting innovation in tokenized money.
Industry analysts view the Bank of England’s call as a pivotal step toward transatlantic policy alignment. The U.S. has already advanced its oversight through the GENIUS Act, which sets out transparency rules for stablecoin reserves and audit frequency. The U.K.’s similar approach would make both frameworks compatible, simplifying compliance for global issuers and payment firms.
Market participants say the move could also accelerate institutional adoption of regulated stablecoins. Banks and fintech providers in both countries are testing settlement solutions that use stablecoins for instant cross-border transactions. With consistent reserve and redemption rules, these pilots could evolve into permanent infrastructure connecting dollar and sterling payment systems.
The coordinated approach is expected to influence how the European Union, Singapore, and Japan design their own stablecoin regulations. Analysts predict that once the U.K. and U.S. frameworks are operational, they will form the backbone of a global standard for asset-backed digital currencies.
For the U.K., collaboration with the U.S. represents both a strategic and financial imperative. As the digital-asset industry matures, stablecoins are becoming a critical bridge between blockchain networks and traditional finance. The Bank of England’s efforts to align with its U.S. counterparts could set the tone for the next phase of regulated, institutional-grade digital payments.
