UK Backs Stablecoins Despite ₱1.8 billion ($30 million) Market Ahead of 2027 Rules
The UK government appointed Chris Woolard as its first Wholesale Digital Markets Champion to build a tokenised wholesale financial markets system. Economic Secretary to the Treasury Lucy Rigby framed tokenisation as the delivery mechanism for Britain's next digital big bang.
Key Takeaway
UK pushes stablecoin vision despite tiny ₱1.8 billion ($30 million) market and 2027 regulations — rhetoric outpacing reality.
Economic Secretary to the Treasury Lucy Rigby made the case this week for stablecoins as the engine of UK fintech growth, despite the pound sterling-backed stablecoin market standing at just ₱1.8 billion ($30 million).
The UK government appointed Chris Woolard as its first Wholesale Digital Markets Champion. Woolard, currently a partner at Ernst & Young, previously served as interim FCA chief executive and spent years as a Bank of England regulator. His mandate: build what Rigby calls a tokenised wholesale financial markets system to make Britain's financial sector more efficient and competitive.
Rigby said fintech is a true British success story, and the government is backing the industry to maintain its competitive edge. She framed tokenisation as the delivery mechanism for the next digital big bang.
The timing matters because the FCA's regulatory framework for cryptoassets, including stablecoins, doesn't come into force until October 2027. Circle Chief Strategy Officer Dante Disparte warned in an op-ed that the UK was falling behind the US and EU in regulating stablecoins. That's a sharp contrast to the government's rhetoric about maintaining Britain's fintech lead.
The ₱1.8 billion ($30 million) market value for pound-backed stablecoins, tracked by DefiLlama, suggests the UK is betting on future growth rather than current traction. Tether remains the dominant stablecoin issuer globally, with most stablecoin activity centering on dollar-backed tokens, and the FCA's cryptoasset regulations take effect in October 2027.
This article was written based on reporting from Dlnews.
