Revolut to Trial Pound-linked Stablecoin Under UK Regulator Oversight

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Revolut will move forward with plans to test a British pound-pegged stablecoin in the UK, entering a regulatory trial overseen by the Financial Conduct Authority. The programme, announced on Wednesday, will involve three smaller companies, while major high-street lenders remain on the sidelines.

The experiment will be conducted within the FCA’s regulatory sandbox, which allows financial technology firms to pilot new products in a supervised environment.

The framework is intended to encourage innovation while ensuring that emerging services, including stablecoins, are assessed under strict safeguards before broader market rollout.

Stablecoins — cryptocurrencies designed to maintain a fixed value against fiat currencies — have gained traction globally, but UK financial heavyweights have been slower to embrace them than counterparts in Europe and the US. The more cautious approach has been influenced in part by scrutiny from the Bank of England over systemic risks and the structure of digital money markets.