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Stablecoin issuer authorisation in the UK

Authorisation to issue a qualifying stablecoin from the UK.

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Reviewed by Harry Khan, Founder · 10 November 2026

Issuing a qualifying stablecoin is one of the seven cryptoasset activities that need FCA authorisation from 25 October 2027. A qualifying stablecoin is a token that aims to hold a stable value by reference to a fiat currency, such as one pound or one dollar, backed by assets the issuer holds.

Who needs it

  • Firms issuing a pound or other fiat-referenced stablecoin from a UK establishment
  • Payment and e-money firms launching their own stablecoin
  • Overseas issuers moving issuance functions to the UK

See also: Stablecoin licensing worldwide · Issuing under MiCA

At a glance

ItemDetail
RegulatorFinancial Conduct Authority (FCA)
Permanent minimum capital£350,000
FCA application fee£11,260 (category 6)
Application window30 September 2026 to 28 February 2027
Regime starts25 October 2027
FCA decision period6 months from a complete application, 12 from an incomplete one

What the FCA requires

  • Own funds of at least £350,000, or more where the fixed overheads or K-factor calculation is higher; the stablecoin issuance K-factor is 1% of the average coins in issue
  • A backing pool held on a statutory trust for tokenholders, separate from the issuer’s own assets, equal in value to the coins in issue
  • At least 5% of the backing pool in on-demand bank deposits, and core backing assets of at least the higher of 5% and the largest daily redemption over the previous 180 days
  • Redemption at par for every holder, generally by the end of the business day after the coin reaches the issuer, with no minimum amounts
  • No interest paid to holders from the backing pool; rewards are allowed only from the issuer’s own funds
  • Senior managers based in the UK, a money laundering reporting officer, and conduct, complaints and disclosure rules

How we help

  1. ScopeWe confirm which of the seven activities your business carries on, and the capital and fee that follow.
  2. PrepareBusiness plan, financial projections, policies, wind-down plan and the individual forms for your senior managers.
  3. FileThe application submitted through the FCA’s Connect system inside the window.
  4. AnswerWe handle the FCA’s questions until it decides, then support the first year of compliance.

See also: Free readiness checker · Crypto compliance · Crypto licence consultants

Get in touch

Tell us where you are and where you want to be.

[email protected]
+44 7563 115980 (phone and WhatsApp)

Further detail

Systemic stablecoins

A stablecoin used widely for payments can be designated as systemic and move under Bank of England supervision, which sets stricter standards, including redemption within 24 hours. FCA authorisation is the starting point for every UK issuer.

Backing assets allowed

The backing pool can include on-demand deposits, short-term government debt and, under conditions, longer-term government debt, public debt money market fund units and short-dated repo arrangements. Tokenised versions of eligible assets are permitted where the custody rules are met.

Issuing from overseas

Issuing a qualifying stablecoin is a UK activity where all its elements are carried on from, or arranged from, a UK establishment. Overseas issuers whose coins are traded in the UK should check how the trading platform and admissions rules apply to them.

Questions

How much capital does a UK stablecoin issuer need?

A permanent minimum of £350,000, or more where the fixed overheads requirement or the K-factor requirement is higher. The issuance K-factor is 1% of the average stablecoins in issue.

Can a UK stablecoin pay interest?

No. Interest or income from the backing pool cannot be passed to holders. An issuer may pay rewards from its own funds, for example based on usage, if they are not linked to backing pool income.

How fast must redemption be?

At par, as soon as practicable and generally by the end of the business day after the coin reaches the issuer’s wallet. The FCA allows time for anti-money laundering checks.

Do e-money institutions need separate authorisation to issue a stablecoin?

Yes. Issuing a qualifying stablecoin is a new regulated activity under the Financial Services and Markets Act. An e-money institution needs Part 4A permission for it, applied for in the window.

When must we apply?

Inside the window from 30 September 2026 to 28 February 2027, so the FCA can decide before the regime starts on 25 October 2027.

Sources

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