The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

Stablecoins and tokenised deposits are emerging as industry priorities, driven by the promise of faster, cheaper, and programmable payments. As regulation for stablecoins takes shape, banks and payment firms face decisions about when and how to build and scale their capabilities, all while navigating lingering open regulatory questions.

Stablecoins and tokenised deposits take centre stage

Stablecoin issuance has surged, with payments use at an early stage but growing. US regulatory clarity is boosting momentum. The UK is accelerating in response, finalising its issuers’ regime this year and opening authorisations in September. EU rules under the Markets in Cryptoassets Regulation (MiCA) are already live, supporting the emergence of euro stablecoins.

Tokenised deposits are emerging alongside stablecoins, operating under existing banking rules. Both instruments will likely coexist, serving different retail, B2B, and wholesale use cases. Interoperability between the two could amplify adoption.

Nevertheless, challenges remain. Stablecoin adoption in UK/EU retail, corporate and wholesale payments remains limited, and is mainly linked to digital assets trading. Globally, B2B cross-border and remittance use is growing, but volumes are small compared to traditional payments.

Emerging regulation will influence how quickly payments use cases for stablecoins and tokenised deposits develop. Four areas stand out.

1. Stablecoins are not yet covered by UK retail payments regulation, so lack consumer protections often attached to traditional payment methods, e.g., fraud safeguards and dispute resolution. Policy attention is shifting from stablecoin issuance to their use in payments, with government/FCA consultations expected this year, but changes are unlikely to take effect before 2028.
2. Stablecoin issuers must balance scale against stricter oversight. The UK splits stablecoins into two tiers: systemic coins used widely for retail and corporate payments under joint BoE/FCA oversight; other stablecoins subject to FCA oversight only. Draft BoE rules and details on the transition from the FCA regime are expected this summer.
3. Capital rules will shape banks’ appetite. The capital treatment of assets based on public or private blockchains and holding of stablecoins on balance sheets will affect commercial viability and infrastructure choices. The Basel Committee’s targeted review of its international standard is due this year, with UK implementation proposals expected in late 2026.
4. UK banks must issue stablecoins via a separate legal entity, similar to the US regime, increasing complexity and costs. In contrast, EU MiCA allows simpler issuance for banks via a regulatory notification. This raises strategic questions on legal entity structures, location and launch timings.

Ultimately, firms will take different paths. Global universal banks may need capabilities in both stablecoins and tokenised deposits; corporate banks may favour tokenised deposits; and retail and global players may prioritise stablecoins. Some firms will issue their own stablecoin, others will partner or integrate third-party stablecoins into payment offerings. Some will watch and wait.

These choices coincide with the ongoing debate about whether to launch UK/EU retail and wholesale central bank digital currencies. Understanding how they might interact with stablecoins and tokenised deposits – following the expected update on next steps for the UK digital pound later this year – will be key for strategic planning.

Find out more

For further insights, see Deloitte’s Digital Assets and Payments Regulatory Outlook 2026. Produced by the EMEA Centre for Regulatory Strategy (ECRS), the full report explores UK/EU regulatory trends and how senior leaders can respond.

Deloitte ECRS is a source of insight and advice, providing thought leadership, training, and tailored briefings to help senior leaders navigate regulatory change.