FCA Selects 4 Firms to Test Stablecoin Innovation in UK Sandbox

The four companies chosen for the cohort are expected to begin testing in the first quarter of 2026, and their findings will “help shape the UKs final stablecoin rules later in 2026,” the release states.

All companies will need to be authorized under the new regime once it goes live in October 2027.

The regulator had previously flagged sterling‑denominated stablecoin payments as a priority for everyday use and has already brought in projects like regulatory technology firm Eunice to explore disclosure standards and market data frameworks for crypto markets.

FCAs stablecoin plans face industry criticism

Despite the FCA‘s efforts, industry leaders such as Coinbase CEO Brian Armstrong have warned that the UK’s emerging stablecoin regime risks undercutting the countrys competitiveness in the digital economy.

In a Wednesday X post, Armstrong pointed to proposals from the Bank of England to cap the amount of stablecoin individuals and businesses can hold, arguing that such caps would act as an “innovation blocker” at a time when other jurisdictions are moving quickly to attract stablecoin and blockchain businesses.

He urged UK residents to support a pro‑innovation strategy for blockchain and stablecoins by signing a petition coordinated by advocacy group Stand With Crypto UK that has already garnered over 80,000 signatures, highlighting the tension between the UKs cautious, payments‑first approach and industry calls for looser limits on stablecoin use.