The Bank of England's draft Code of Practice points to the bank that systemic sterling stablecoins will require. We help issuers, and the banks and payment firms around them, define that target independently, prove the difficult parts in a working model, and build the capability to deliver, before platform and migration decisions harden.
In its draft Code of Practice (Appendix 4 of its Policy Statement), the Bank of England sets the shape of a systemic sterling stablecoin. The Bank intends to finalise the Code by end-2026, after which it will apply to recognised systemic issuers. It is a draft and a consultation, not settled law.
At least 30% central bank money, the rest in short-term UK government debt, with tightly bounded repo.
Two statutory trusts (pending legislation) and a daily reconciliation of backing against coins in issue.
Redeem within 24 hours of a valid request, with fair and transparent fees.
A temporary issuance guardrail caps a single product at 40 billion pounds.
We read the full draft Code in our analysis. Every figure here is the Bank of England's, from the draft.
A systemic stablecoin is not one problem. We read it through the seven lenses we use on any bank, because the regime touches all of them at once.
How value is backed, exchanged, and measured: the backing pool, the redemption promise, and the economics under the guardrail. Its 1:1-backed unit is demonstrated; the backing pool is blueprint.
Justified trust through the two statutory trusts, consumer protection, and a daily reconciliation that proves backing equals issuance. Reconciliation is demonstrated; the trusts are blueprint.
Capital, continuous reconciliation and evidence, maker-checker repair, and supervisory readiness. Repair and evidence are demonstrated; capital sizing is advisory.
Settlement rails, settlement finality, coexistence with existing payments, and the ledger that carries it. Payments and settlement are demonstrated; rails at scale are blueprint.
A holder's redemption on a 24-hour clock, fair fees, and clear visibility into how the coin is backed. Designed; blueprint.
The treasury, reconciliation operations, and accountable governance a systemic issuer must build and staff to run the regime.
Where an agent may act under the controls, and how a drift-repair decision is reasoned, approved, and evidenced. Its evidence trail is demonstrated.
Our prototype is a non-production proving ground, on synthetic data with test consumers. It shows best practice and brings parts of the regime to life today. What remains is blueprint we are filling in the prototype, and we label it honestly.
A tokenised unit whose backing holds one-for-one across every mint and move, proven by an invariant test.
Freeze and forced-transfer under policy, aligned to the ERC-7943 token standard, a control capability for tokenised money.
ISO 20022 messaging and balanced settlement on the same governed ledger.
An authoritative journal, drift detection, and maker-checker repair, with evidence produced as it runs. See the architecture.
Central bank money plus short-term gilts, with the treasury operations the regime expects.
A 24-hour redemption and burn workflow against a valid request.
General business risk capital, plus the financial-risk and wind-down reserves.
Backing-assets and wind-down trusts, pending the enabling legislation.
The mechanism genuinely runs in the prototype.
Inputs are generated test fixtures.
Production scale and cutover are described, not executed here.
The boundary. Synthetic data. Test consumers, never real customers. Production-grade controls. Not a production banking system.
It is a proving ground, not a product: synthetic data, test consumers, and no production banking service. See the demonstration these capabilities run on.
Independent advisory, reference architecture, and working proof. We partner for the treasury-quant and trust-law detail rather than pretending to own it.
An independent reading of the architecture the draft Code points to, for an issuer or for the banks and payment firms around one.
Test backing, reconciliation, redemption, and the controls in the working model before platform and migration decisions harden.
Leave a vendor-neutral specification and the capability to deliver it, sequenced so the bank stays in control.
It is a multi-ledger world, and likely to stay one. We design ledger-neutral, so a sterling stablecoin can settle across the networks that emerge rather than betting the proposition on a single one.
Bring the decision in front of you. We will help you define the target, prove the difficult parts, and sequence the path, on the draft regime as it stands today.
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