The UK Treasury has announced a sweeping plan to unify payments regulation under a single framework, bringing traditional payment systems, stablecoins, and tokenized deposits into one coordinated regime. The proposal, unveiled during London Fintech Week, signals a major shift in how the country intends to govern the rapidly evolving digital finance landscape.
City Minister Lucy Rigby said the initiative is designed to future-proof the UK’s payments ecosystem, ensuring it remains competitive while adapting to innovations like blockchain-based settlement and tokenization. The framework will introduce a formal issuance regime for stablecoins used in payments and expand regulatory oversight in key areas of financial technology.
Expanding oversight in a digital-first payments era
A central feature of the proposal is an expanded role for the Financial Conduct Authority, particularly in overseeing Open Banking and emerging payment models. The regulator is also expected to explore new rules around payment activities conducted by AI-driven agents, reflecting the growing integration of automation in finance.
To encourage innovation, the Treasury plans to streamline administrative processes for firms offering stablecoin payment services. This move aims to reduce entry barriers while maintaining regulatory safeguards. Alongside this, Chris Woolard has been appointed as Wholesale Digital Markets Champion to guide the development of tokenized financial systems at the institutional level.
Delighted to have announced the appointment of Chris Woolard CBE as the Wholesale Digital Markets Champion today!
As Champion, Chris will help provide leadership & coordination to help us drive forward the digitalisation of our markets – an incredibly important agenda. pic.twitter.com/a74gX2CT2o
— Lucy Rigby KC MP (@LucyRigby) April 21, 2026
The government is also committing £1 million in funding to the Centre for Finance, Innovation and Technology, starting in April, supporting collaboration across the fintech ecosystem.
Balancing innovation with market trust
Officials say the reforms are part of a bigger ambition to position the UK as a global hub for financial services. The Treasury emphasized the “transformative potential” of digital assets, noting their role in reshaping how consumers and businesses interact with money.
Meanwhile, the UK Treasury finalised the Cryptoassets Regulations 2025, setting out authorization, disclosure, and market abuse rules ahead of a 2027 rollout. The regime aligns with the FCA’s broader push to expand retail investment access and address low UK participation rates.
The Treasury is expected to launch further consultations on payment services and e-money regulations under its long-term financial strategy, reinforcing its goal of making the UK a leading destination for fintech innovation.
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