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FCA

FCA

Financial Conduct Authority (UK)

High Impact

FCA PS26/10 final rules for UK non-systemic stablecoin issuance

Published

Sep 23, 2026

Topics

Cryptoassets, Stablecoins, Issuance, Backing assets, CASS safeguarding, Redemption, Disclosures, Cryptoasset trading platforms

Executive Summary

The FCA has published PS26/10, setting final rules for UK authorised issuers of non-systemic UK-issued qualifying stablecoins. The regime establishes a baseline for issuance, backing assets, redemption, safeguarding, record-keeping and disclosures, with the stated aim of supporting stablecoins as trusted money-like instruments. The FCA largely retains the framework consulted on in CP25/14 and CP25/41, but makes targeted operational changes: the backing asset composition requirement is simplified; all backing assets must be held under product-specific statutory trusts; unallocated backing funds accounts are removed; redemption timing is amended so AML/KYC checks occur before the T+1 redemption clock starts; limited intragroup custody is permitted; and firms may retain a limited excess of up to 5% in the backing asset pool. Issuers will also need daily reconciliations, annual independent assurance over 1:1 backing statements, quarterly disclosure declarations, and aligned website and Stablecoin QCDD disclosures. The supplied text does not state an explicit effective or application date, so implementation planning should proceed subject to FCA commencement materials and related Handbook instruments.

What Changed

modifiedBacking asset composition requirement simplified

Previous

CP25/14 proposed a Backing Asset Composition Ratio using a 14-day forward redemption forecast, a 180-day look-back error measure and calculation every 14 redemption days.

New

Final rules use a simpler historic-redemption metric, retain the 5% on-demand deposit requirement as a separate component, and require calculation every redemption day.

modifiedRedemption clock starts after receipt of the token

Previous

The consultation proposal measured T+1 from receipt of a full redemption request, with AML/KYC checks included within the redemption period.

New

The T+1 clock starts only after the issuer receives the stablecoin for redemption, following onboarding and financial crime checks.

newStatutory trust and separate pools confirmed

Previous

The FCA consulted on statutory trust arrangements, product-specific pools and backing of issuer-held tokens.

New

The requirements are adopted in final rules, with burning identified as the way to remove tokens from the pool so they no longer need backing.

modifiedCustody model permits limited intragroup safeguarding

Previous

The consultation proposed that third-party custodians appointed to safeguard backing assets should be unconnected to the issuer’s group.

New

Final rules allow intragroup custody within a 20% limit or subject to an exemption assessment and FCA notification, alongside conflict, diversification and prudent custody controls.

modifiedDisclosure and QCDD requirements clarified

Previous

CP25/14 and CP25/41 proposed website disclosures, Stablecoin QCDDs, update requirements, withdrawal rights and independent review obligations, with respondents requesting clarification on frequency, format and historic versions.

New

Final rules keep the core disclosure framework, do not prescribe a template, clarify disclosure retention and version access, and limit counterparty disclosure to material holders of the backing asset pool.

Business Impact

Who is affected

Directly affected

UK authorised stablecoin issuers carrying on regulated issuance under Article 9M, UK qualifying cryptoasset trading platforms admitting UK-issued qualifying stablecoins, and custodians or third parties appointed by issuers.

Indirectly affected

tokenholders, prospective holders, intermediaries, exchanges, wallet and custody providers, payment firms, treasury and liquidity teams, assurance providers and firms monitoring cryptoasset settlement or payment use cases.

Jurisdictions

United Kingdom

Business processes

Stablecoin product approval and issuance governance, Backing asset treasury management and liquidity monitoring, CASS safeguarding, statutory trust and custodian onboarding, Daily internal and external reconciliations, AML/KYC onboarding before redemption processing, T+1 redemption operations and customer journeys, Website disclosure and Stablecoin QCDD governance, Third-party outsourcing due diligence and oversight, Annual independent assurance and SMF disclosure sign-off

Estimated effort

High

Compliance risk

High

Affected Reports

Daily internal and external backing asset reconciliation recordsBacking asset composition requirement calculation record for issuers using expanded backing assetsCustodian acknowledgement letters covering relevant backing asset accountsWebsite disclosure package for UK-issued qualifying stablecoinsStablecoin Qualifying Cryptoasset Disclosure Document and annual independent review statement
FieldValidation rule
Core Backing Asset RequirementCalculate as the higher of 5% of the backing asset pool or the highest daily redemption percentage in the past 180 redemption days, or since CASS 16 applied where fewer than 180 redemption days exist.
On-demand Deposit RequirementMaintain a 5% on-demand deposit requirement as a separate component; on-demand deposits used for the ODDR cannot also satisfy the CBAR.
Backing asset currencyBack a UK-issued qualifying stablecoin only with assets denominated in the stablecoin’s reference currency.
Permitted excess in backing asset poolAfter internal reconciliation, firms may retain a limited excess of up to 5% of the value of the relevant stablecoin pool within the statutory trust.
Intragroup custodian exposureLimit intragroup custodians to 20% of the backing asset pool unless an exemption assessment is made and the FCA is notified.
Redemption start pointThe T+1 redemption period starts when the issuer receives the UK-issued qualifying stablecoin being redeemed in its wallet, not when the initial redemption request is submitted.
Website disclosure and QCDD identifiersInclude the stablecoin product name and any relevant digital identifiers, such as ISO 24165 Digital Token Identifiers or an alternative identifier.
Custodian disclosure thresholdDisclose firms holding backing assets only where they hold more than 20% of the asset pool.

Recommended Actions

7 suggested next steps· derived from source analysis
  1. 1
    AI generatedStep 1 of 7

    map each stablecoin product to a dedicated backing asset pool, statutory trust structure, custodian set and reconciliation process before launch.

  2. 2
    AI generatedStep 2 of 7

    update treasury policies to reflect eligible backing assets, single-currency backing, ODDR, daily CBAR/BACR calculations and the 5% excess tolerance.

  3. 3
    AI generatedStep 3 of 7

    redesign redemption workflows so AML/KYC checks and customer onboarding occur before the T+1 redemption clock starts, while avoiding unreasonable customer journey barriers.

  4. 4
    AI generatedStep 4 of 7

    refresh custodian and outsourcing contracts to cover information sharing, UK-law governed outsourcing of issuance activities, acknowledgement letters, diversification reviews and intragroup custody limits.

  5. 5
    AI generatedStep 5 of 7

    build a disclosure governance process covering website disclosures, Stablecoin QCDDs, quarterly updates, annual independent review publication, five-year retention and provision of historic versions on request.

  6. 6
    AI generatedStep 6 of 7

    assign senior management ownership for disclosure declarations, reconciliation exception escalation, unresolved shortfall notifications and ongoing third-party oversight.

  7. 7
    AI generatedStep 7 of 7

    monitor FCA commencement materials, PS26/13 reporting requirements, PS26/11 custody rules and the Bank/FCA systemic stablecoin transition framework before confirming implementation deadlines.

Timeline

consultation deadline

Jul 31, 2025

Feedback deadline for the FCA’s consultation on stablecoin issuance and cryptoasset custody, as stated in the FCA press release referenced in official search results.

other

Mar 2026

The FCA held a Stablecoins Payments Policy Sprint and stated that the output would feed into discussions with HM Treasury and future Modernising Payments Regulation consultations.

publication

Jun 2026

The Bank of England issued a June 2026 policy statement and draft rules relevant to systemic stablecoin issuers, including requirements referenced by the FCA for firms moving to joint regulation.

publication

Jun 30, 2026

The FCA published PS26/10 setting final rules for non-systemic UK-issued qualifying stablecoin issuance.

publication

Jun 30, 2026

The FCA and Bank of England published their approach to joint regulation of systemic stablecoin issuers and transition from FCA-only regulation to joint regulation.

Sources

AI-generated analysis is based on the following primary sources. Always verify against the official publication.

Related Evidence

Verified source support for this analysis

The evidence agent checks whether the drafted finding is supported by official publications and relevant public source material.

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