Today Innovate Finance and the Digital Pound Foundation published a report outlining the urgency for stablecoin regulations in the UK and the potential opportunity given the UK’s role in foreign exchange markets. The market for offshore dollars is referred to as the Eurodollar market, and the associations envision the UK playing a similar role for stablecoins. Innovate Finance represents the fintech sector in the UK.
“Without decisive and urgent action, the UK risks missing a significant window of opportunity,” said Janine Hirt, CEO of Innovate Finance. “As the fourth most traded currency globally and home to nearly 40% of FX turnover, GBP is a natural anchor for global stablecoins. It’s not unrealistic to suggest the UK could capture 10–20% of this market. Despite other jurisdictions moving earlier, the UK has the advantage of learning from their gaps.”
There were plans for UK stablecoin regulations to be in place by now. While both the Conservatives and Labour are supportive of stablecoins, the change of government last year resulted in a legislative roadmap review. Rather than introducing legislation piecemeal, the Labour government plans to introduce comprehensive laws for the crypto sector in 2026. Another round of stablecoin consultation is due this quarter.
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