The Bank of England has retreated from earlier proposals that would have imposed strict per-wallet holding limits on stablecoins, replacing them with a system-wide issuance cap of approximately $50 billion. The BoE framed the cap as a threshold triggering enhanced systemic oversight rather than a hard ceiling, signaling a more accommodative posture toward stablecoin growth than its prior consultation suggested.
For Armada's crypto desk, stablecoins and tokenized T-Bills are core collateral instruments. BoE's shift away from punitive holding limits reduces near-term regulatory tail risk for GBP-adjacent stablecoin counterparties and may embolden US regulators toward a cap-based rather than prohibition-based model, directly shaping the collateral universe Armada can accept from family office and market-maker clients.