The Financial Conduct Authority has selected four firms to participate in stablecoin trials under its Regulatory Sandbox, marking a significant step toward the United Kingdom’s forthcoming cryptoasset regime. The selected companies are Revolut, Monee Financial Technologies, ReStabilise and VVTX, and testing is scheduled to begin in the first quarter of 2026.
The sandbox initiative allows firms to test products in real world conditions while operating under regulatory supervision and defined safeguards. In this phase, the focus will be on stablecoin issuance models covering use cases such as retail payments, wholesale settlement and crypto trading infrastructure.
The FCA received 20 applications for the programme before narrowing the field to four participants. According to the regulator, the trials are designed to assess how stablecoin issuers can operate within a framework that prioritises consumer protection, financial stability and operational resilience.
Matthew Long, the FCA’s Director of Payments and Digital Assets, said the regulator aims to support stablecoin issuers so they can be trusted for payments, settlement and trading functions. He added that the sandbox work will help shape final policy decisions and contribute to broader government objectives under the National Payments Vision.
The stablecoin testing programme follows the FCA’s recent consultation on final cryptoasset rules, which remains open for responses until March 12, 2026. Over the past year, the regulator has consulted on stablecoin issuance standards, custody requirements, prudential safeguards, conduct of business obligations and market abuse provisions. Policy statements outlining finalised rules are expected later this summer.
Firms participating in the sandbox will receive ongoing feedback from FCA specialists. The regulator said lessons learned during testing will directly inform the design of permanent rules, which are expected to be finalised later in 2026.
Under the proposed regime, stablecoin issuers will need to meet strict governance standards, anti financial crime controls and Consumer Duty requirements before receiving full authorisation. Once the broader crypto framework formally launches in October 2027, all sandbox participants will be required to obtain complete regulatory approval to continue operating. The FCA plans to open the application gateway for authorisation in September 2026.
The sandbox forms part of the UK’s broader digital asset strategy, which also includes the Digital Securities Sandbox and other initiatives aimed at integrating tokenised finance into regulated markets.
By beginning supervised stablecoin trials ahead of full rule implementation, the FCA is attempting to balance innovation with oversight. Market participants are watching closely to see how the findings influence capital requirements, reserve backing rules and redemption standards for UK based stablecoin issuers in the next phase of crypto regulation.
