REGULATED STABLECOIN SETTLEMENT

The Bank of England has adjusted its proposed systemic stablecoin rules in a more flexible direction.

The signal is not simply that stablecoin rules are becoming lighter. It is that the UK is trying to define how stablecoins can operate as regulated settlement money.

According to the FT, the BoE is moving away from strict individual and business holding limits toward per-stablecoin issuance caps, lower central-bank reserve requirements, and safeguards such as 24-hour redemption, statutory trust structures, and capital and liquidity requirements.

For tokenized markets, that matters.

Tokenized assets do not scale on issuance alone. They need a money layer that can support settlement, redemption, liquidity movement, and trust under regulatory oversight.

The next phase of tokenized markets will depend not only on what gets issued on-chain, but on whether regulated settlement money can support the market structure behind it.

STOChain #RWA #Tokenization #Stablecoin