The Financial Conduct Authority has announced the launch of a stablecoin-specific cohort of its regulatory sandbox.
Following this announcement, the FCA launched a special cohort within its Regulatory Sandbox for firms and institutions that are issuing stablecoins. This represents a chance for companies and organisations to test their stablecoin products and services under the UK's evolving regulatory regime.
Furthermore, this cohort represents an important part of the Financial Conduct Authority’s commitment to supporting growth and development in the UK financial services. It is expected to also complement broader optimisation initiatives, such as the Digital Securities Sandbox.
The focus on stablecoins and the process of applying for the sandbox
According to the official press release, stablecoins are currently increasingly important in cryptoasset markets and have the possibility to drive new ideas in financial services, with potential uses for both retail and wholesale customers. At the same time, recent consultations (CP25/14 and CP25/25) have also set out proposed rules and guidance, with the aim of giving issuers a clearer view of future regulations.
Firms and companies that are planning to issue a stablecoin in the UK under the upcoming regime, as well as institutions that are ready to test their stablecoin and help shape the FCA’s policy are invited to apply to the sandbox.
Furthermore, the sandbox will offer companies the possibility to test their product (firms will be enabled to try out their stablecoin solutions in a controlled environment, either with consumers live in the market, or using firm data), influence policy (meaning that their insights could help shape FCA’s future rules) support and feedback (companies will get guidance from FCA’s Innovation Case Officers and feedback on their application), as well as visibility, (successful applicants will be listed publicly on FCA’s website, even though acceptance isn’t an endorsement). Applications opened on Wednesday, 26 November 2025, and the deadline is set for Sunday, 18 January 2026 (11.59 pm).
In order to apply, companies will need to complete the application form, prepare a test plan, and check permissions. After this process is done, an Innovation Case Officer will review the application and may request more information. The firms will be notified if they are accepted. Moreover, the FCA will provide no formal appeals process, but feedback will be offered if any companies are not successful with their applications.
