Revolut, Others Join FCA Stablecoin Sandbox to Pilot Payments

- The UK's FCA launches initiative with Revolut, Monee Financial, ReStabilise, and VVTX to test stablecoin use cases. - Industry pushes back against proposed holding caps, citing potential innovation barriers. On February 25, 2026, the UK's Financial Conduct Authority (FCA) announced its new regulatory sandbox program, selecting Revolut, Monee Financial Technologies, ReStabilise, and VVTX to participate in this initiative targeting stablecoin issuance and payment systems. The program, beginning in Q1 2026, will assess stablecoin applications for payments, wholesale settlement, and cryptocurrency trading. The project's findings will help shape the country's stablecoin regulatory framework, set to be unveiled later this year. The FCA’s sandbox program offers the selected firms a controlled environment to develop and test their stablecoin services while prioritizing financial stability and reliability. Matthew Long, the FCA's Director of Payments and Digital Assets, highlighted the initiative's role in building trust among stablecoin issuers, noting that this aligns with the UK government’s broader vision to create a forward-looking payments ecosystem that benefits consumers. The FCA selected these participants from a pool of 20 applicants, reflecting the program's competitive nature. Media reports emphasize the FCA's focus on encouraging innovation while ensuring regulatory rigor. However, not all stakeholders agree with the FCA’s approach, as the agency's proposed limits of £20,000 on individual stablecoin holdings and £10 million for businesses have sparked industry-wide debate. For example, Coinbase CEO Brian Armstrong described these restrictions as “innovation blockers” and warned of potential setbacks to the UK's ambitions as a global fintech leader. In response, the advocacy organization Stand With Crypto UK rallied around the issue, launching a petition for more permissive regulations in a campaign that has gained significant public momentum. As the initiative unfolds, the sandbox findings will significantly influence how the UK integrates stablecoins into its financial ecosystem by late 2026.