UK Government Expands Bank of England's Mandate to Support Stablecoin Innovation - KuCoin — 2026-08-28

## Short Segments Today, Dunamu and Visa team up to explore stablecoin payments and AI-driven financial services, while the Bank for International Settlements flags risks in stablecoin group activities. Also, Evernorth clears a regulatory hurdle for a Nasdaq listing, and BitGo expands its derivatives offerings by acquiring NYDIG's institutional trading business. Coming up, the UK government expands the Bank of England's mandate to support stablecoin innovation. Dunamu and Visa partner to explore stablecoin payments and AI-driven financial services. In a strategic move, Dunamu, the operator of the Upbit exchange, has partnered with Visa to explore stablecoin payments and AI-driven financial services. This collaboration aims to leverage both companies' strengths in technology and payment networks to lead the next-generation financial market. The partnership will focus on stablecoin-based payments and global remittances, with plans to extend into AI-based future payments, including agentic commerce. This development highlights the growing interest in integrating stablecoins into mainstream financial services, potentially transforming how payments and remittances are conducted globally. The Bank for International Settlements flags stablecoin group activity risks. The Bank for International Settlements has raised concerns about stablecoin group activities, noting that activity restrictions often apply only to the issuing entity, not the wider corporate group. This could allow nonbank issuers' affiliates to engage in activities that might pose risks to financial stability. The report also highlights that stablecoins function more like exchange-traded funds than true money, with prices often deviating from par. This scrutiny underscores the need for comprehensive regulatory frameworks to address potential risks associated with stablecoin issuance and usage. Evernorth clears SEC registration, paving the way for a Nasdaq listing. Evernorth Holdings has received SEC approval for its Form S-4 registration, clearing a significant hurdle for its planned merger with Armada Acquisition Corp. II. This move sets the stage for Evernorth to list on Nasdaq under the ticker "XRPN," potentially raising over $1 billion. The company aims to deploy capital across the XRP economy, focusing on strategies to grow XRP per share over time. This development marks a key step in Evernorth's journey to becoming a major public XRP treasury vehicle. BitGo expands derivatives offerings with NYDIG acquisition. BitGo has acquired NYDIG's institutional trading business, significantly enhancing its derivatives, structured products, and financing services. The acquisition brings approximately 30 NYDIG employees and 250 institutional client relationships to BitGo, bolstering its position in the institutional markets. This expansion aligns with BitGo's strategy to offer comprehensive digital asset services, including custody, settlement, and trading, to institutional clients. The deal underscores the growing demand for integrated crypto infrastructure solutions in the institutional space. ## Feature Story UK government expands Bank of England's mandate to support stablecoin innovation. The UK government has announced plans to give the Bank of England a new statutory objective to support innovation in payment systems, including stablecoins and other forms of digital money. This secondary objective aims to foster innovation while maintaining financial stability as the central bank's primary responsibility. The move is part of a broader effort to position the UK as a leader in digital payments and financial technology. Stablecoins, which are designed to hold a steady value, have seen rapid growth and are increasingly used in payments and crypto trading. The new mandate narrows the UK's regulatory gap with the US GENIUS Act and the EU's MiCA framework, signaling a more proactive approach to digital currency regulation. Under the expanded remit, the Bank of England will report annually to Parliament on its progress in supporting innovation. This development is expected to encourage the issuance and use of stablecoins in the UK, potentially boosting the country's fintech sector. However, the Bank's primary duty of financial stability will limit how far innovation support can extend, ensuring that risks are managed effectively. As the bill moves to the House of Lords for further consideration, stakeholders will be watching closely to see how this policy shift impacts the broader financial ecosystem. For issuers, custodians, and payment companies, this could mean new opportunities to develop and deploy stablecoin solutions within a supportive regulatory framework. As the UK takes steps to embrace digital money, the implications for global financial markets and the future of payments are significant.