The Financial Conduct Authority (FCA) has chosen Monee Financial Technologies, ReStabilise, Revolut, and VVTX to participate in its Regulatory Sandbox for testing stablecoin products. These companies were selected from 20 applications submitted to the regulator, with testing set to commence in Q1 2026.
The Regulatory Sandbox provides firms an opportunity to experiment with their products and services under controlled conditions while ensuring appropriate safeguards are in place. This initiative focuses specifically on stablecoin issuance and aims to evaluate the FCA’s proposed policy framework in a practical setting. During the testing period, each company will receive direct feedback from FCA specialists.
The selected firms encompass various use cases of stablecoins, including payments, wholesale settlement, and crypto trading. This diverse selection is intended to provide the FCA with an extensive overview of how stablecoin services operate across different business models and contexts.
Guiding the UK’s Crypto Regulation
This sandbox activity aligns with the broader regulatory efforts currently underway by the FCA. Previously, the regulator has conducted several consultations on topics such as stablecoin issuance and cryptoasset custody, prudential rules, conduct of business, admissions and disclosures, and market abuse. These consultations are now nearing completion, and the FCA plans to release its Policy Statements in summer 2026.
The UK is striving to develop a comprehensive regulatory framework for crypto activities. Authorisation under this new regime will be mandatory for all firms engaging in such activities within the country. The application gateway is set to open in September 2026, with full implementation expected by October 2027. Additionally, the FCA has been hosting webinars aimed at educating prospective applicants on its expectations, including guidelines on anti-money laundering measures.
The stablecoin sandbox program also supports other FCA innovation initiatives, such as the Digital Securities Sandbox (DSS). A representative highlighted that the program aims to ensure these products are trustworthy for payments, settlement, and trading. The outcomes of this initiative are expected to benefit both consumers and financial transactions more broadly, in line with the government’s National Payments Vision.
Findings from the sandbox testing will inform the final stablecoin rules that the FCA intends to publish later in 2026. The regulatory body has outlined a comprehensive crypto roadmap, positioning the sandbox results as an integral part of this process to ensure the eventual regulations are both practical and conducive to responsible innovation in UK financial services.
