UK Cuts Stablecoin Capital Requirement to 1%; Banks Shift From Whether to How on Stablecoin Integration

The UK Financial Conduct Authority reduced its stablecoin capital requirement to 1%, a concrete regulatory change affecting stablecoin issuers operating under the UK framework. Separately, banking industry reporting characterized the sector's posture as having shifted from debating whether stablecoins belong in finance to actively evaluating implementation approaches. Stablecoin collateral composition was identified as the primary competitive differentiator determining which stablecoin networks will achieve dominant adoption.