U.K. and U.S. regulatory initiatives could unlock the next wave of cross-border stablecoin innovation, reshaping global payments and digital asset adoption.
As global finance increasingly embraces digital assets, regulators in the U.S. and U.K. are laying the groundwork for the future of cross-border stablecoin adoption. Krishna Subramanyan, CEO of Bruc Bond, a major global payment institution, explores how coordinated regulatory frameworks could unlock new efficiencies and accelerate responsible adoption across borders.
Discover top fintech news and events!
Subscribe to FinTech Weekly’s newsletter
Read by executives at JP Morgan, Coinbase, Blackrock, Klarna and more
As digital assets move toward mainstream adoption, the actions of the United States and the United Kingdom are beginning to define the trajectory of global stablecoin innovation. Currently, the United States is advancing its GENIUS Act, while the Bank of England is consulting on its proposed stablecoin regulatory framework. Deputy Governor Sarah Breeden has called for closer alignment between the U.K. and U.S., an indication that both markets recognise the importance of coordinated oversight of the payments ecosystem. Together, these initiatives signal the first steps toward stablecoins that can operate predictably and responsibly across jurisdictions.
Regulatory momentum is shifting toward a more coordinated international approach, laying the legal and operational foundations for stablecoins to function reliably across borders. Should the U.K. and U.S. maintain this trajectory, they could create clearer conditions for innovation and give firms the certainty needed to engage in a more globally integrated market.
Setting the pace for global stablecoin adoption
The U.S.’s GENIUS Act is setting the pace for responsible stablecoin adoption by embedding cross-border harmonisation directly into its framework. This ensures that regulatory alignment isn’t an afterthought, but rather a core design principle intended to support global consistency from the outset.
A key element is the Act’s equivalence mandate, requiring the U.S. to assess and recognise comparable stablecoin regimes in other jurisdictions within six months of the Act taking effect, with the aim of achieving formal alignment by July 2027. This thoughtful approach eliminates the burden on businesses to navigate multiple, fragmented rulebooks and instead gives them a clearer, more predictable path to operating internationally. It also provides a useful template for other regulators and points toward more collaborative international standard-setting, boosting confidence for both market participants and users.
Although the detailed rules and final implementation timeline are still being developed, with further guidance expected by July 2026, early signals suggest eight areas of cooperation will be especially important:
- Asset-Redemption and Tokenisation (ART) – Structuring crypto-backed stablecoins for transparency and liquidity.
- Fiat-Equivalent Money Tokens (EMT) – Ensuring stablecoins pegged to traditional currencies meet payment and custody standards.
- Standards for exchange & custody – Promoting interoperable infrastructure across trading and custodial services.
- Integration into traditional finance – Enabling tokenised securities and other conventional instruments to leverage stablecoins.
- Cross-border transaction compliance – Harmonising AML, KYC, and reporting standards.
- Regulatory testing sandboxes – Supporting innovation while managing risk.
- Market access criteria – Clarifying requirements such as security deposits and systemic vs. non-systemic classifications.
- Enforcement information-sharing – Facilitating cross-border regulatory oversight.
Taken together, these priorities point to a more integrated and tightly governed digital-asset ecosystem.
By moving early to align with other major jurisdictions, the U.S. is signalling a willingness to create stable, predictable global frameworks for stablecoins. If this model works, it could encourage similar equivalence mechanisms in the U.K. and other major jurisdictions. The Act’s July 2027 timeline formally opens the door for jurisdictions seeking equivalence, potentially accelerating the emergence of a more globally coordinated regulatory landscape.
The impact on cross-border payments
For businesses already leveraging stablecoins, these developments signal a major turning point. Both ART and EMT stablecoins are poised to play a larger role in cross-border payments, offering faster settlements, lower fees, and more seamless integration with existing financial infrastructure.
Because ARTs are often pegged to diversified crypto or asset baskets, greater regulatory clarity is expected to help them evolve beyond their current speculative perception. EMTs are becoming credible functional equivalents to fiat currency, offering predictable value and low-cost movement across borders. This combination introduces new opportunities for businesses that have historically faced delays, high fees and operational friction when navigating traditional correspondent banking networks. Stablecoins also reduce exposure to currency volatility by providing a predictable settlement value, bypassing many of the bottlenecks that have long slowed international transactions.
As adoption grows, traditional banks and fintechs alike will need to adapt to this evolving landscape to remain competitive, whether by integrating stablecoins into their settlement pipelines, partnering with blockchain-based payment providers, or rethinking their cross-border fee structures and processing models.
The future of the global stablecoin market
With clearer regulatory frameworks emerging, several structural shifts are likely to define the next phase of stablecoin evolution. Crypto-backed ART stablecoins are expected to move beyond their speculative roots and gain more practical, mainstream adoption.
Simultaneously, fiat-pegged EMTs are becoming increasingly positioned to function as true currency equivalents, offering stable, low-cost tools for everyday payments and cross-border transactions. Alongside this, new non-SWIFT, digital-asset-native transfer rails are likely to develop as global payment providers look for faster and more cost-efficient ways to move value internationally.
Finally, businesses are beginning to integrate tokenised reward systems into customer engagement models, using blockchain-based incentives to create more dynamic and interoperable loyalty experiences for their clients.
Collaboration as the catalyst for global success
The combined momentum of U.S. and U.K. initiatives points to a future where stablecoins are not just a niche asset class but are a core component of global payments. For businesses and financial institutions alike, staying ahead means embracing these regulatory frameworks and preparing for a more interoperable, digital-first financial world.
The U.S. and U.K. now have a unique opportunity to shape this market together, pairing the GENIUS Act’s structured, harmonised approach with the Bank of England’s commitment to cross-border coordination. Working towards regulatory synergy will enable both jurisdictions to not only set the standard, but also build a sustainable and interoperable global stablecoin ecosystem.