• The UK FCA has selected Monee, ReStabilise, Revolut and VVTX to test stablecoin issuance.
• The trials will take place within the FCA's Regulatory Sandbox, allowing firms to test in a real-world environment.
• The FCA says the pilot will help shape the UK’s final stablecoin framework, expected later in 2026.

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

FCA’s pilot focuses on stablecoin issuance

The announcement on Tuesday states that the testing is taking place within the Regulatory Sandbox programme. With this program, the four firms can legally test stablecoin products in a real-world environment, ensuring appropriate safeguards are put in place.

The FCA said that the trial period will help it align its proposed policy, clarify rules and support responsible innovation in the emerging sector. Testing will span various use cases, including payments, wholesale settlement and cryptocurrency trading. The FCA will provide strategic feedback to the four selected firms.

The Director of Payments and Digital Assets at the FCA, Mathew Long, stated that “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 pilot is set to begin in the first quarter of 2026, with findings expected to help the FCA shape the final release of its stablecoin regulatory framework.

The UK is making strides toward regulating stablecoin issuance, with the FCA affirming that consultations on the future regulatory framework for crypto assets are substantively complete. The final rules are likely to be published this summer.

Following the release of the new framework, all companies offering crypto-related services will need to seek approval. While licensing will start in October 2027, firms eyeing authorisation to carry out crypto activities in the UK will start applying in September 2026.

Governments around the world are prioritising stablecoin frameworks designed to mitigate systemic risk, protect consumer rights, and safeguard monetary sovereignty. The United States (US) GENIUS Act, signed into law in July, paved the way for the oversight of stablecoin issuance and payments.

Although the US Clarity for Payment Stablecoins Act, popularly known as the CLARITY Act, has stalled due to a standoff between stakeholders in the banking sector and stablecoin companies, it is expected to provide operational transparency and ensure oversight similar to that of traditional depository institutions once signed into law.