The UK’s Financial Conduct Authority (FCA) has initiated a move that is crucial for integrating digital assets into the UK’s financial system safely utilizing a dual regulatory approach: The ​FCA manages non-systemic stablecoins, focusing on consumer protection and compliance while the ​Bank of England (BoE) manages systemic stablecoins, imposing strict prudential requirements to ensure financial stability. ​Stablecoins must be backed by secure, liquid assets held in a statutory trust with an independent custodian & Issuers are required to guarantee redemption for fiat currency by the end of the next business day. However, being that stablecoins are intended as a payment mechanism- the income generated from backing assets is generally not permitted to be passed to holders as interest. ​This sandbox confirms the UK's commitment to enabling regulated innovation for sterling stablecoins, providing a clear path for development while ensuring robust financial safeguards are in place. Big win for Crypto worldwide. FOLLOW ME for Crypto News & Updates! #CrypTok #BTC #ETH #StableCoins #FIAT #UK #ETF #OTHON