UK Financial Conduct Authority Introduces Stablecoin Project Group

According to ChainCatcher, the UK Financial Conduct Authority (FCA) has announced the launch of a stablecoin project group as part of its regulatory sandbox initiative, with applications open until January 18, 2026. Additionally, Bloomberg reports that the UK Debt Management Office is considering expanding the UK government bond market, a move related to stablecoin reserves. In a recent speech, David Geale from the FCA revealed that a 'large enterprise' has been included in the sandbox program to test a pound sterling stablecoin for payments. Participants in the sandbox must ensure their designs comply with the requirements outlined in the FCA's consultation paper from May. The UK employs a dual-track approach to stablecoin regulation: the Bank of England oversees systemically important stablecoins for prudential and financial stability purposes, while the FCA is responsible for the regulation of other stablecoins, including conduct and consumer protection.