UK FCA Picks Revolut Among 4 Stablecoin Sandbox Firms

The UK FCA stablecoin sandbox has its first participants after the Financial Conduct Authority announced on February 25 that it selected four companies to test stablecoin services under proposed British regulations. Revolut, Monee Financial Technologies, ReStabilise, and VVTX were chosen from 20 applicants to pilot issuance, payments, wholesale settlement, and crypto trading in a controlled environment, with results set to inform the country's final stablecoin framework.

Which Firms Did the FCA Select for Stablecoin Testing?

The FCA chose the four firms to join a dedicated stablecoin cohort within its long-running Regulatory Sandbox. Each company will pilot different services spanning payments, wholesale settlement, and crypto trading under proposed UK rules in what the regulator called a "safe environment." Testing is expected to begin during Q1 2026, and the findings will shape Britain's permanent stablecoin regulations later in the year, according to the FCA.

Matthew Long, director of payments and digital assets at the FCA, stated that the watchdog would actively support UK stablecoin issuers so their products could "be trusted for payments, settlement and trading." Long added that the regulator's involvement would "benefit consumers and financial transactions" while helping to "deliver the FCA's strategy and the Government's National Payments Vision."

We will support UK stablecoin issuers to ensure that they can be trusted for payments, settlement and trading.

FCA Sandbox History and Stablecoin Cohort Timeline

The FCA's Regulatory Sandbox launched in 2016 under Project Innovate, and the stablecoin-specific cohort opened for applications in November 2025. The program targets prospective UK issuers seeking to pilot pound-denominated or other fiat-backed tokens and related payment use cases while Britain's permanent stablecoin regime is being finalized. All four participating companies must obtain full authorization under the new framework once it goes live in October 2027.

The regulator had previously flagged sterling-denominated stablecoin payments as a priority for everyday consumer use and has already brought in projects like regulatory technology firm Eunice to explore disclosure standards and market data frameworks for crypto markets.

Why Is Coinbase's CEO Criticizing UK Stablecoin Rules?

Despite the FCA's efforts, Coinbase CEO Brian Armstrong) has warned that Britain's emerging stablecoin framework threatens to undermine the country's competitiveness in the digital economy. Armstrong targeted proposals from the Bank of England to cap the amount of stablecoins individuals and businesses can hold, labeling such restrictions an "innovation blocker" when rival jurisdictions are racing to attract blockchain enterprises.

Armstrong urged UK residents to rally behind a pro-innovation approach by signing a petition organized by advocacy group Stand With Crypto UK. The campaign has already gathered more than 80,000 signatures, underscoring friction between the FCA's cautious, payments-first strategy and industry demands for looser limits on stablecoin usage.

What This Means Going Forward

The FCA's stablecoin sandbox marks a pivotal step for UK crypto regulation, but industry tension is unlikely to fade. With testing underway this quarter and permanent rules not expected until October 2027, the selected firms have a narrow window to demonstrate that stablecoin services can operate safely under British oversight. How the regulator balances innovation with consumer protection will determine whether the UK can compete with jurisdictions like the European Union under its MiCA framework.