UK regulator launches stablecoin sandbox

The UK's Financial Conduct Authority (FCA) has added a dedicated cohort for stablecoins to its regulatory sandbox, DL News reported. The initiative aims to give companies that issue tokens pegged to the British pound or U.S. dollar an opportunity to test their products and services. The FCA stated that major firms have already confirmed their participation and are preparing to test pound-pegged stablecoins within the coming months. Stablecoin companies can apply to join the FCA sandbox until Jan. 18, 2026.