PANews reported on May 20th that Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, stated in a speech at City Week 2026 in London that tokenization will be a strategic priority for the future, building a UK financial system that includes regulated stablecoins. The Bank of England plans to release a draft of systemic stablecoin regulations next month and finalize it by the end of the year, with a temporary cap on the total issuance of stablecoins if necessary. The Bank encourages commercial banks to issue tokenized deposits and upgrade retail payment infrastructure to support interbank use. The Bank of England and the FCA have been advancing a pilot program for tokenized securities through the Digital Securities Sandbox, with 16 institutions, including Euroclear, HSBC, and LSEG, preparing to launch by the end of 2026. The Bank is still evaluating a digital pound sterling (CBDC) proposal and supports the government's Digital Gilt tokenized government bond project.