Bank of England Says It Won’t Rush Digital Pound, Sees Stablecoins and Tokenized Deposits as Alternatives — 2026-10-12

## Short Segments WasabiCard's latest event in Singapore highlights the future of stablecoin payments. Today, we'll explore how WasabiCard is pushing stablecoins closer to real-world financial use, Standard Chartered's new custody service for Ripple's RLUSD, Morgan Stanley's timeline for tokenized equities, and the NCUA's proposed stablecoin reporting requirements for credit unions. Coming up, we'll dive into the Bank of England's cautious approach to a digital pound and its implications for stablecoins and tokenized deposits. WasabiCard's Funds Flow event in Singapore explores the future of stablecoin payments. During TOKEN2049 Week, WasabiCard hosted a gathering of industry leaders from Circle, Lotus Technology, and AWS to discuss the integration of stablecoins and tokenized assets into mainstream finance. This event underscores the growing momentum behind stablecoins as a viable payment method, with discussions focusing on their potential to streamline transactions and reduce costs. As stablecoins gain traction, payment companies and developers are increasingly looking to integrate these digital assets into their platforms, signaling a shift towards more efficient and accessible financial services. For listeners, this means that stablecoins are moving beyond theoretical discussions and into practical applications, potentially transforming how we conduct everyday transactions. Standard Chartered launches custody for Ripple's RLUSD on the XRP Ledger. The bank has partnered with Ripple and LMAX Group to support RLUSD as collateral for certain products, enhancing its digital asset custody infrastructure. This move marks a significant step in integrating digital currencies into traditional banking systems, providing institutional clients with more options for managing their digital assets. By offering custody services for RLUSD, Standard Chartered is positioning itself as a key player in the evolving landscape of digital finance, where interoperability and security are paramount. For custodians and financial institutions, this development highlights the growing importance of digital asset management and the need to adapt to new financial instruments. Morgan Stanley sets sights on supporting tokenized equities by Q1 2027. The bank is actively developing the infrastructure needed for blockchain-based securities trading, pushing its timeline from late 2026 to early 2027. This delay reflects the complexities involved in integrating tokenized assets into existing financial systems, but also underscores Morgan Stanley's commitment to embracing digital innovation. For issuers and investors, the introduction of tokenized equities could offer new opportunities for liquidity and market access, potentially reshaping the securities landscape. As the industry continues to evolve, stakeholders should watch for further developments in tokenization and its impact on traditional equity markets. NCUA proposes 26 stablecoin reporting accounts for credit unions. The National Credit Union Administration's proposal aims to enhance oversight by introducing new reporting fields for stablecoin-related activities. This includes detailed data collection on custody, issuer exposure, and holdings, with a target implementation date of March 31, 2027. For credit unions, this proposal represents a significant regulatory shift, requiring them to adapt their reporting practices to accommodate digital assets. As community institutions explore digital dollar services, the NCUA's initiative highlights the need for robust compliance frameworks to ensure transparency and security in the burgeoning stablecoin market. ## Feature Story The Bank of England takes a cautious approach to the digital pound, considering stablecoins and tokenized deposits as viable alternatives. Deputy Governor Sarah Breeden, speaking at the International Monetary Fund's annual meeting, emphasized that the Bank is not rushing to introduce a retail Central Bank Digital Currency (CBDC), known as "Britcoin." Instead, the focus is on upgrading the Real-Time Gross Settlement (RTGS) system to enable 24/7 instant settlement, while exploring the potential of commercial stablecoins and tokenized deposits. This strategic pivot reflects the Bank's recognition of the rapid innovation in digital payments and the potential for existing technologies to fulfill some of the roles envisioned for a digital pound. By not committing to a CBDC, the Bank of England is allowing room for the private sector to innovate with stablecoins, which could offer similar benefits without the need for a new digital currency. This decision has significant implications for issuers and payment companies, as it opens the door for stablecoins to play a more prominent role in the UK's financial ecosystem. For regulators, it underscores the importance of creating a flexible regulatory environment that can accommodate both public and private digital currencies. As the Bank continues its design phase for the digital pound through 2026, stakeholders should monitor how these developments influence the broader landscape of digital finance and the balance between central bank and commercial innovations. Ultimately, the Bank of England's approach highlights the evolving nature of money in a digital economy and the need for a diverse, multi-money landscape that can adapt to changing consumer and business needs.