The Bank of England proposed allowing major stablecoin issuers to invest up to 60% of their reserves in short-term government debt, easing its earlier stance. Only 40% of assets would need to be held with the BoE, down from a previous proposal of 100%. The new rules mark progress toward the UK’s stablecoin framework, with temporary limits on holdings and potential central bank liquidity support. Stablecoins mainly used for crypto trading will remain under FCA oversight.

Disclaimer: This image is taken from Reuters.