The UK’s Financial Conduct Authority (FCA) has announced four firms selected to test stablecoin services in its regulatory sandbox.
FCA Sandbox Will Shape UK Stablecoin Rules Later 2026
In a new announcement, the FCA has identified four companies that are part of the regulator’s stablecoin sandbox program. This sandbox will test stablecoin-related products in a safe environment under proposed regulatory rules.
The FCA is launching a special cohort called the “stablecoins cohort” for its regulatory sandbox back in November 2025. “The stablecoins cohort is part of our commitment to supporting growth and innovation in UK financial services,” the statement noted.
The UK regulator took applications from companies between November 26th and January 18th to become members of the group. 20 firms applied and now, the FCA has announced the results.
Monee Financial Technologies, ReStabilise, Revolut, and VVTX are the four companies selected by the regulator to test how their services and products will work under the proposed rule. “It will help the FCA to test proposed policy in a living environment and ensure that future rules are clear, effective and support responsible innovation,” explained the FCA.
The four firms’ proposals cover a range of stablecoin use cases, including payments, wholesale payments, and trading, but the FCA’s sandbox will focus more on the issuance of these fiat-pegged tokens. “We are supporting UK stablecoin producers to ensure they can be trusted for payments, settlements and trading,” said Matthew Long, director of payments and digital assets at the FCA.
According to the announcement, UK sandbox testing will begin in the first quarter of 2026, with the findings helping to shape the country’s final stablecoin regulations later in the year.
The UK is not the only country that has been making progress in controlling this category of hidden funds. Last year, President Donald Trump signed the GENIUS Act, which provides a regulatory framework for stablecoins in the United States.
Over in Asia, Hong Kong legalized a stablecoin bill in August, while South Korea’s bill is pending as policymakers debate the merits of the issuance, with the country’s central bank only representing the bank’s won tokens.
Legal pressure around the world has meant that identified digital assets have received more and more recoveries. Japan saw the launch of its first yen token last year. Meanwhile, in Europe, twelve major banks have come together to form a consortium that aims to launch a stablecoin tied to the euro in the second half of 2026. Currently, this sector is largely dominated by USD coins, so the consortium is planning to challenge the hegemony with a real European alternative.
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