UK Stablecoin Shift Meets Hyperliquid Surge as ETH Bleeds Billions

UK stablecoin rules drop wallet caps and set a £40B issuer limit as Hyperliquid and Base lead 3-month inflows.

The Bank of England has revised its planned stablecoin framework after industry feedback, moving away from earlier holding limits for users and businesses.

The updated proposal removes the planned £20,000 personal wallet limit and replaces it with a broader issuance cap for systemic stablecoins.

Each systemic stablecoin would face an initial £40 billion issuance guardrail, while issuers could hold more reserves in short-term UK government debt.

At the same time, three-month net flow data showed capital moving toward Hyperliquid and Base, while Ethereum mainnet recorded heavy outflows.

Bank of England Eases Stablecoin Limits

The Bank of England published its stablecoin policy statement and draft rules on June 22. 

The update changed earlier proposals that had drawn concern from digital asset firms, payment companies, and market groups.

Under the revised plan, the Bank will not apply the earlier per-coin holding limits for individuals. 

Businesses will also avoid the previous cap model, which industry groups had described as difficult to operate across wallets.

Instead, systemic stablecoins would face a £40 billion issuance guardrail at launch. Issuers would also be allowed to hold up to 70% of backing assets in short-term UK government debt.

2027 Rules Set Stablecoin Path

The Bank said feedback on the draft rules is due by September 22, 2026. It plans to finalize its Code of Practice before the end of 2026, ahead of market entry.

The rules are expected to allow regulated stablecoins to operate in the UK from 2027. 

The framework applies to systemic sterling-denominated stablecoins once they are recognized by HM Treasury.

Stablecoins used mainly for crypto trading will remain under Financial Conduct Authority supervision. 

The Bank said the framework covers backing assets, redemption, safeguarding, liquidity, operational standards, and settlement resilience.

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Hyperliquid and Base Lead Flow Rotation

Away from regulation, three-month net flow data showed Hyperliquid and Base leading inflows. 

The same data showed Ethereum mainnet recording the largest capital outflows during the measured period.

The rotation points to continued activity on lower-cost and high-volume networks. Base has drawn users through Layer-2 activity, while Hyperliquid has attracted trading-related liquidity from active market participants.

Ethereum remains central to DeFi and stablecoin settlement, but mainnet activity faces competition from newer execution environments. 

This has pushed more users toward faster networks with lower transaction costs and stronger trading activity.

The UK stablecoin update arrives as payment rules and Onchain liquidity continue to change across crypto markets. 

Together, the two trends show how regulated stablecoin access and chain selection remain important for market participants and digital asset firms.

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