Key Takeaways:

• The UK financial regulator has selected four companies, including Revolut, to test stablecoins under official supervision.
• The testing program began in early 2026 and will help the government finalize its stablecoin rules later this year.
• Some industry leaders argue that proposed limits on stablecoin holdings could make the UK less competitive globally.

The UK’s Financial Conduct Authority (FCA), the country’s main financial regulator, announced on 25 February, 2026, that it has chosen four companies to test stablecoin products under its Regulatory Sandbox program. Revolut, the London-based company that offers banking-style services through a mobile app, is the most well-known of the four selected.

A stablecoin is a type of cryptocurrency designed to maintain a stable value, usually by being linked to a traditional currency, such as the British pound or the US dollar. This makes it different from cryptocurrencies like Bitcoin (BTC), whose prices can rise or fall sharply within short periods. 

Four firms, one mandate: shape the UK’s stablecoin rules

The FCA selected Revolut alongside Monee Financial Technologies, ReStabilise, and VVTX from a pool of 20 applicants. The Regulatory Sandbox is a program that allows companies to test new financial products in real-world conditions while operating under regulatory supervision. In other words, it lets both firms and the regulator try out new ideas and learn what works before permanent rules are set. 

Testing kicked off in the first quarter of 2026, and the FCA plans to use the findings to finalize its stablecoin rules later this year.

The trials will center on stablecoin issuance, which means creating new stablecoins and making them available for people and businesses to use. The selected four firms represent different areas of activity. Some will explore everyday consumer payments, others will test wholesale settlement, i.e., the process of completing large-value transactions between banks and financial institutions, and some will cover crypto trading uses. 

Matthew Long, Director of Payments and Digital Assets, FCA, said in the regulator’s press release that the program aims to ensure UK stablecoin issuers can be trusted when used for payments, settlement, and trading. He added that the initiative supports consumer protection and aligns with the government’s National Payments Vision, aiming to modernize the UK’s payment systems.

What this means for Revolut

Revolut obtained a restricted UK banking license in July 2024 and is currently in what regulators call a “mobilization phase.” During this stage, the company is allowed to hold only up to £50,000 in total customer deposits while it completes the final steps toward becoming a fully operational bank.

The company is reportedly exploring the launch of its own stablecoin, though no formal announcement has been made. Its inclusion in the sandbox allows Revolut to help shape and better understand the very rules it would eventually operate under.

For context, the UK’s full new cryptoasset regulatory laws are scheduled to come into force in October 2027. Before that, regulators will open the formal application process for crypto firms in September 2026, allowing companies to apply for official approval.

Industry criticism casts a shadow

The FCA’s move has not been welcomed by everyone in the industry. Brian Armstrong, CEO and co-founder of Coinbase, one of the world’s largest crypto exchanges, wrote on X on 24 February, 2026 that the UK’s stablecoin rules, as currently proposed, risk making the country uncompetitive in the global digital economy.

He criticized a November 2025 Bank of England proposal to limit individual stablecoin holdings at £20,000 (about $26,350) and business holdings at £10 million, describing the limits as an “innovation blocker.” 

He also shared a Stand With Crypto UK petition, urging the government to adopt a more innovation-friendly approach to stablecoin regulation. The petition had surpassed 82,000 signatures at the time of writing. 

Andrew MacKenzie, CEO of Agant, a developer of sterling-backed stablecoins, also reportedly said that the pace at which UK rules are being introduced isn’t fast enough to back the government’s ambition of making London the leading hub for digital assets.