FCA selects 4 firms to test stablecoin innovation in its Regulatory Sandbox

The stablecoins cohort is part of the FCA's commitment to supporting growth and innovation in UK financial services. 20 applications were received and the FCA has chosen the following firms: 

• Monee Financial Technologies
• ReStabilise
• Revolut
• VVTX

The Regulatory Sandbox programme allows firms to trial stablecoin products in real world conditions with appropriate safeguards. It will help the FCA assess its proposed policy in a live environment and ensure future rules are clear, effective and support responsible innovation.

The FCA’s testing will primarily focus on stablecoin issuance. The 4 selected firms’ proposals represent a range of stablecoin use cases, including payments, wholesale settlement and crypto trading. Each firm will receive feedback from FCA specialists while helping to shape the UK’s regulatory approach.

Matthew Long, director of payments and digital assets at the FCA, said: 

'We are supporting UK stablecoin issuers to ensure they can be trusted for payments, settlement and trading. It will benefit consumers and financial transactions and help to deliver the FCA's strategy and the Government's National Payments Vision.’

The testing is part of the FCA’s broader work to enable innovation across UK financial services and complements other innovation initiatives such as the Digital Securities Sandbox (DSS).

Testing begins in Q1 2026 and the findings will help shape the UK’s final stablecoin rules later in 2026.

Notes to editors

1. The FCA received 20 applications from firms wishing to test stablecoins in its Regulatory Sandbox.  
2. The FCA has previously set out the timeline for crypto regulation in its crypto roadmap[3].  
3. The FCA has consulted on key topics such as stablecoin issuance and cryptoasset custody (CP25/14[4]), prudential rules (CP25/15[5] and CP25/42[6]), the application of the FCA Handbook (CP25/25[7] and CP26/4[8]), conduct of business and high-level standards (CP25/40[9]) and admissions and disclosures and market abuse (CP25/41[10]).  
4. The consultations on the future regulatory regime for cryptoassets are substantively complete, and the FCA will publish its Policy Statements this summer.  
5. Find out more about existing rules[11] firms must comply with.  
6. All firms will need to be authorised under the new regime[12] once the new regime goes live in October 2027. The application gateway for firms who want to be authorised to carry out crypto activities in the UK opens in September 2026 and now is the time to start getting ready.  
7. The FCA is hosting authorisation-focussed webinars to help prospective applicants understand its expectations. The first one is available to watch on demand[13] and the next one will be on 18 March, focusing on the FCA’s anti-money laundering rules[14].
8. The Prudential Regulation Authority issued a Dear CEO letter[15] on innovations in the use by deposit-takers of deposits, e-money and regulated stablecoins. 
9. The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA[16].