The Bank of England will allow stablecoin issuers to hold short-term government bonds.

Sarah Breeden, Deputy Governor of the Bank of England, announced that the Bank will relax its regulatory framework for stablecoins, allowing stablecoin issuers to hold some of their collateral in short-term government bonds. She explained, "The Bank of England's 2023 stablecoin framework regulatory framework was not ideal for stablecoin issuers. While the initial stablecoin plan was primarily focused on retail use cases, that has changed. Now, stablecoins will be used to settle tokenized securities."