On 12 August 2025, a coalition of twenty-five leaders from across the digital assets industry wrote to the Rt Hon Rachel Reeves MP, Chancellor of the Exchequer, urging the UK government to adopt a proactive national strategy for stablecoins.
The letter argues that stablecoins represent not merely a technological innovation but a strategic opportunity to enhance the UK's global financial leadership. The signatories call for stablecoins to be positioned not as a risk to be contained, but as financial infrastructure to be responsibly embraced.
Key Proposals
Rethinking the regulatory lens. The UK's current approach defines stablecoins primarily as "crypto-assets with reference to fiat currency," a framing that focuses on form rather than function. The letter argues this is akin to defining a cheque as a paper with reference to currency, when both are essentially negotiable instruments backed by regulated issuers.
A national strategy for stablecoins. The signatories propose a strategy that would strengthen the UK's role as a global financial centre, generate new fee and FX revenue streams for regulated firms, and support diversified demand for gilts through new digital channels.
Revenue opportunity. With just a 10% share of a $1 trillion global market, the UK could see more than £1.4 billion in new annual revenues.
Exporting GBP stablecoins. The letter proposes a national target of £100 billion in circulating GBP stablecoins and tokenized deposits, with a significant share of demand originating from abroad. A robust GBP stablecoin market would reinforce sterling's role in international trade at a time when its share of FX reserves has been under pressure.
Trade policy integration. Stablecoin reciprocity should be incorporated into future UK trade negotiations, creating mutually beneficial financial integration while maintaining regulatory control.
Diversified sovereign funding. Every stablecoin held is backed by government debt, creating an entirely new international source of funding for governments. This represents an opportunity to move from wholesale to more diversified funding models.
Signatories
The letter was signed by leaders from AllUnity, Aon, Aptos Labs, Ava Labs, BitGo, Coinbase, The Crypto Collective, Concordium, Copper Technologies, Digital Asset, Fintech Brainfood, Fireblocks, GLEIF, Hedera Foundation, ZKsync Foundation, Kraken, Monerium, Quant Network, R3, Stellar Development Foundation, STRIDE, Tokenised GBP, Transatlantic-o, Ubyx, UK Cryptoasset Business Council, Utila, VanEck Ventures, Zodia Custody, and Zuhlke Engineering.