The FCA’s crypto and stablecoin regulatory regime is final: what should firms do now?

While priorities will vary by firm, regulated firms are currently tending to focus on three areas.¹

A. Enabling stablecoins to support tokenised securities or fund tokenisation strategies

Stablecoins are likely to be an important enabler of tokenised securities and funds. Near-instant settlement, 24/7 transferability and automated payment flows all generally depend on having a DLT-based means of payment available alongside the security. Where clients need or want to hold, buy or sell stablecoins as part of that proposition, firms may require crypto permissions. For example, intermediary permissions will be relevant where the firm facilitates customer purchases or sales, while custody or arranging custody permissions may also be needed depending on how assets are held. Stablecoin permissions should therefore be built into tokenised securities strategies from the outset.

B. Stablecoins for retail and corporate payments 

HMT’s July 2026 proposals to bring UK-issued stablecoins (and tokenised deposits) into the payments regulation regime should, over time, encourage the development of a UK stablecoin payments market. Clearer consumer rights and protections, including around refunds, redemptions and dispute resolution, should support adoption of UK-issued stablecoins in payments. However, this initiative is early stage, with significant policy work planned over 2027/28 and implementation unlikely before 2029.