FCA adds stablecoin cohort to UK regulatory sandbox #
The UK Financial Conduct Authority (FCA) has added a dedicated stablecoin cohort to its Digital Sandbox programme, aiming to support innovation in regulated digital money, according to Finextra. The new cohort will allow firms developing stablecoin-based payment, settlement, and tokenisation solutions to test their products in a controlled environment with regulatory guidance
The initiative is part of the UK’s broader effort to build a comprehensive framework for fiat-backed stablecoins, following government plans to bring issuance and custody activities under FCA oversight. Participants in the sandbox will gain access to synthetic data, technical infrastructure, and supervisory feedback as they experiment with real-world use cases
The FCA says the expansion will help accelerate safe adoption of digital money and strengthen the ecosystem around upcoming UK stablecoin regulations. Industry observers view the move as a sign that the UK aims to position itself as a leading hub for regulated stablecoin innovation.