The Bank of England removed the £20,000 per‑person limit and the £10 million business cap for sterling stablecoins and set a single £40 billion ceiling on the total amount of each systemic sterling stablecoin that can exist in the UK. Stablecoins represent about 0.5 % of the global market, which totals roughly $315 billion, and are overwhelmingly denominated in dollars. The United States and the European Union apply strict regulations but do not impose hard caps on token size. A House of Lords committee noted that wallet‑level limits differed from international practice and created enforcement challenges, prompting the removal of the caps. Without per‑user limits, households and businesses can hold unlimited amounts, and issuers can use a larger share of their backing for yield‑earning assets. The reserve requirements were changed from a 40 % unremunerated deposit to 30 %, allowing up to 70 % of reserves to be held in short‑dated UK government debt, with systemic issuers permitted to begin at 95 % gilts and gradually reduce that share. More of the reserve pool can now generate a return, which improves the financial viability of issuing sterling stablecoins. The £40 billion ceiling may restrict growth if network effects such as liquidity depth and merchant acceptance do not materialise, potentially limiting the token’s usefulness compared with dollar or euro stablecoins that have deeper markets and no cap. Issuers also face reduced margins and a smaller addressable market under a conservative regulatory framework. The Bank said it will reassess the cap once it is satisfied that credit‑provision risks are managed, but demand remains uncertain because domestic instant payment systems already provide free, fast transfers. The prevalence of dollar‑denominated stablecoins, reinforced by recent legislation, and the limited size of the sterling market present challenges for scaling a UK‑based token.