Per Woofun AI, the Bank of England has published a draft code of conduct targeting institutions that issue systemically important stablecoins. This regulatory framework aims to foster safe and innovative practices while establishing UK-issued stablecoins as trustworthy digital currencies.

The proposal imposes a £40 billion ceiling on total issuance and explicitly bans interest payments to token holders. Reserve requirements mandate that 70% of assets be held in short-term UK government bonds and 30% in bank deposits within England.

Additionally, issuers must guarantee immediate redemptions within a 24-hour window.