UK Stablecoin Regulation
UK’s Financial Conduct Authority framework requiring authorization for stablecoin issuance, with 100% backing by high-quality liquid assets.
What is UK Stablecoin Regulation?
The UK’s stablecoin regulation, advanced through FCA Consultation Paper CP25/14 in May 2025, mandates prior authorization for issuing stablecoins, treating them as money-like instruments backed fully by real-world assets like cash or equivalents. Draft legislation in April 2025 under the Financial Services and Markets Act introduces new activities for crypto custody and stablecoin issuance, with final rules expected by end-2026. This aligns with the GENIUS Act’s cross-border implications, requiring UK issuers to comply with redemption rights and reserve transparency for consumer protection.
Related Terms
Lamport
The smallest fractional unit of Solana’s native digital asset, SOL, equivalent to 0.000000001 SOL (one-billionth of a SOL).
Stablecoins on Ethereum
Digital assets pegged to fiat currencies like USD, issued on Ethereum for stable value transfer, DeFi collateral, and global payments.
Consensys and Joseph Lubin
Consensys is a blockchain software studio founded by Ethereum co-founder Joseph Lubin, building enterprise tools and advocating for decentralized tech.
APY （DeFi）
Annual Percentage Yield (APY) is the annualized rate of return on an investment or loan, accounting for compound interest earned or paid over a year.
Buy Side
The portion of the order book listing aggregated buy orders at various price levels.
Beacon Chain
The proof-of-stake consensus layer of Ethereum, coordinating validators since December 2020.