TLDR
- FCA names 4 firms for early-2026 stablecoin sandbox trials in the UK
- UK stablecoin sandbox starts early 2026 as FCA tests issuance in real use
- Revolut joins FCA stablecoin cohort as regulator stress-tests new models
- FCA sandbox to probe reserves, governance and settlement for UK stablecoins
- Stablecoin trials run through 2026, shaping the UK’s final oversight regime
The FCA launched a new phase of stablecoin testing as it selected four firms for its regulatory sandbox. The programme begins in early 2026 and aims to verify how stablecoin issuance can operate under proposed rules. The FCA expects the results to guide final policy decisions later in the year.
Stablecoin Cohort Selected for UK Trials
The FCA reviewed 20 applications and chose Monee Financial Technologies, ReStabilise, Revolut, and VVTX for the testing group. The regulator structured the cohort to represent different stablecoin models that support payments, settlement, and trading. The FCA intends to assess these models under controlled conditions and observe their operational strength.
The selected firms will test services linked to issuance and supporting infrastructure under defined safeguards. Each participant will operate in real environments while meeting the FCA’s oversight requirements and reporting obligations. The FCA aims to understand technical limits and ensure stablecoin activity meets expected standards.
The programme reflects the regulator’s goal to support innovation while protecting the financial system. The FCA also expects the trials to reveal operational gaps that may require regulatory revisions before final rules. The sandbox will help align policy aims with national payments objectives.
Focus on Issuance and Practical Testing
The FCA designed the trials to examine how stablecoin issuance behaves when placed under regulatory supervision. The regulator will monitor liquidity, governance, and risk controls across the tested models. Each firm will receive technical guidance from FCA specialists to strengthen compliance during the process.
The sandbox will allow the firms to introduce controlled products without facing full regulatory requirements. This approach supports experimentation while reducing systemic risk during the early phase of market entry. The FCA will then apply the findings to refine its broader digital asset framework.
The testing will also support the UK’s push to modernise payment channels through regulated digital assets. The FCA expects stablecoin issuers to demonstrate high transparency in reserve management. The regulator will analyse settlement efficiency to determine the potential role of stablecoins in financial infrastructure.
Initiative Supports Wider Policy Development
The FCA introduced the stablecoin cohort as part of its wider innovation strategy for financial services. The regulator continues to strengthen its approach through programmes such as the Digital Securities Sandbox. These initiatives aim to align evolving market technology with robust regulatory standards.
The UK government has highlighted stablecoins as a key component of future payment systems. The FCA intends to ensure that issuers can provide reliable and secure products under clear rules. The regulator plans to use the testing period to improve sector readiness before new requirements take effect.
The sandbox will run through 2026 and will guide the development of the final stablecoin regime. The FCA expects the findings to shape the structure of future oversight and market conduct rules. The initiative aims to support responsible growth while securing confidence in emerging payment models.
