PANews reported on November 28th that, according to Ledger Insights, the UK Financial Conduct Authority (FCA) announced the launch of a stablecoin project group as part of its regulatory sandbox program, with an application deadline of January 18, 2026. Bloomberg also reported that the UK Debt Management Office is exploring expanding the UK government bond market, a move that will be related to stablecoin reserves. In a speech yesterday, David Geale of the FCA stated that a "large enterprise" has been included in the sandbox program to test a sterling stablecoin for payments. Sandbox participants must ensure their designs comply with the requirements outlined in the FCA's May consultation document.

The UK adopts a two-track system for regulating stablecoins: the Bank of England regulates systemically important stablecoins for prudential and financial stability purposes; the responsibility for regulating other stablecoins falls to the Financial Conduct Authority (FCA), which is also responsible for the conduct and consumer protection oversight of all stablecoins.