FCA: stablecoin payments priority for 2026

The UK Financial Conduct Authority (FCA) has positioned stablecoin payments as a key priority for 2026, stating it will support UK-issued stablecoins to enable faster and more convenient payments. 

To help firms experiment with stablecoin issuance, the FCA will open its regulatory sandbox for safe testing, with the stated aim of supporting innovative policy development. The FCA is also inviting firms that plan to issue a stablecoin in the UK and want to test products in the sandbox to apply by 18 January 2026. 

The announcement sits within a broader growth package. In a letter to the Prime Minister, the FCA said that—following nearly 50 growth commitments set out at the start of the year—the vast majority have been met, alongside additional initiatives. The FCA frames these reforms as enabling firms to scale, supporting home ownership, strengthening capital markets, and giving consumers more investment choice. 

For 2026, the FCA indicates a “new wave” of growth initiatives focused on more efficient supervision, digitalisation of financial services, increasing SME lending, and boosting trade and international competitiveness. Plans also include deepening US–UK market integration through the Transatlantic Taskforce for Markets of the Future, and preparing to enable certain early-stage firms to conduct regulated business before full authorisation once legislation is in place. 

The FCA also highlights “flagship” reforms delivered in 2025, including work intended to unlock capital investment and liquidity (such as PISCES and a new prospectus regime), accelerate digital innovation (including a Supercharged Sandbox in partnership with Nvidia and a Scale-up Unit with the PRA), reduce regulatory burden (including fewer data requests for 36,000 firms), and improve authorisations (with 99.5% of cases processed on time). 

In impact terms, the FCA’s direction signals an effort to translate stablecoins from a “crypto” concept into a mainstream payments use case—tested in controlled conditions, and developed alongside the wider UK growth and competitiveness agenda. 

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