Per Woofun AI, the Bank of England has released updated policy statements and draft guidelines targeting issuers of systemically important stablecoins. The revisions significantly adjust collateral requirements, increasing the allowable proportion of interest-bearing assets, such as short-term UK government bonds, from 60% to 70%. The remaining 30% must be held in central bank deposit accounts to guarantee timely redemption capabilities.

Concurrently, the regulatory body introduced temporary issuance safeguards, establishing an initial quota of £40 billion for each systemically important stablecoin. The Bank of England is collaborating with the Financial Conduct Authority (FCA) to construct an end-to-end regulatory framework. This structure includes orderly transition arrangements for entities evolving from non-systemically important institutions to those deemed systemically significant.