The UK Treasury has announced a comprehensive regulatory package to consolidate payment services, stablecoins, and tokenized deposits into a single unified framework. The plan was unveiled during Fintech Week in London and is designed to modernize the UK payments system while aligning regulation with blockchain-based settlement and digital finance innovation.
The framework will introduce a dedicated issuance regime for stablecoins used in payments, alongside expanded oversight for the Financial Conduct Authority (FCA), including its role in Open Banking. It also explores regulatory adjustments for payment activities conducted by AI-driven agents, reflecting the growing role of automation in financial systems.
Funding Boost and Leadership Appointments Support Digital Finance Strategy
The package includes an additional £1 million ($1.35 million) in funding for the Centre for Finance, Innovation and Technology to strengthen collaboration across the fintech sector. It also confirms the appointment of Chris Woolard CBE, partner at EY and former interim CEO of the FCA, as Wholesale Digital Markets Champion to guide the development of tokenized wholesale financial systems.
City Minister Lucy Rigby said the reforms aim to build a payments ecosystem that is secure, competitive, and capable of adapting to rapid technological change, reinforcing the UK’s position in global financial services.
Industry Response Highlights Adoption and Infrastructure Challenges
CoinCover Chief Commercial Officer Anthony Yeung said the direction of policy reflects growing institutional interest in stablecoins and tokenization, but emphasized that regulation alone will not guarantee adoption. He noted that operational resilience—such as custody systems, key management, and disaster recovery will be critical for market trust.
The Treasury also confirmed plans to consult on reforms to payment services and electronic money regulation under the broader “Leeds Reforms” and the UK’s 10-year financial services strategy aimed at positioning the country as a global hub for fintech and digital assets.
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