FCA Identifies Cross-Border Payments as Stablecoins’ Top Near-Term Use

Stablecoins have become an important medium in digital finance as blockchain technology has spread. But the lack of harmonized national rules has left cross-border payments facing high compliance costs and fragmented oversight. Integrating regulated stablecoins into the traditional cross-border financial system could significantly improve international settlement efficiency. It would also be a key step toward broader institutional adoption of tokenized assets, unlocking global liquidity and modernizing market infrastructure.

The U.S. and UK finance ministries jointly issued recommendations through the Transatlantic Taskforce for Markets of the Future on July 14, 2026, outlining a 10-point road map for regulatory coordination. They agreed that stablecoin issuers must provide backing of at least 1:1 with high-quality reserve assets and segregate those assets to protect holders. The initiative is intended to coordinate rules among regulators including the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the UK Financial Conduct Authority and the Bank of England.

The Bank of England has defined stablecoins as a “new form of money” that can be used for payments and settlement. The move signals a policy shift from guarding against crypto-asset risks to establishing rules for issuance, reserves and redemption. It has implications for the sterling payment system and the development of tokenized deposits, while giving banks and fintech companies clearer market direction.

By the end of 2024, the BoE plans to begin accepting regulatory applications for “systemic stablecoins” that could be widely used for payments. The Financial Conduct Authority is also supporting sterling stablecoins that meet standards for reserves, redemption and consumer protection. Digital bank Revolut, which already offers crypto-asset services, could be among the first applicants or issuers.

Stablecoins offer round-the-clock settlement through fiat-pegged assets and could reduce the costs, delays and prefunding burden associated with cross-border transfers. Citi and corporate treasury platform Stable Sea said companies are not seeking to replace the banking system. Instead, they are prioritizing specific payment corridors that are costly, slow or unreliable.

On April 9, 2026, PYMNTS interviewed Citi Head of Digital Assets Ryan Rugg and Stable Sea CEO Tanner Taddeo. The stablecoin market was worth about $315 billion at the time, but everyday consumer and commercial payments still accounted for only a single-digit share of activity. Stable Sea can provide same-day payments in more than 40 markets, although institutional transactions currently account for most of its volume.