Regulation · Regulation · Monday, 18 May 2026 · 2 min read · Token+ Intel desk
PRA writes to firms on tokenised assets and stablecoin exposures
Bank of England prudential leaders set out expectations on the treatment of tokenised assets, stablecoins and other crypto exposures.
Key points
- The PRA published a letter on prudential treatment of tokenised assets and stablecoins.
- A separate letter addresses innovations in deposits, e-money and regulated stablecoins.
The Bank of England's Prudential Regulation Authority has published a letter from David Bailey, Charlotte Gerken and Rebecca Jackson on the prudential treatment of tokenised assets, stablecoins and other cryptoasset exposures.
For banks, capital treatment decides whether holding or settling in tokenised instruments is economic.
The Democratize view
Capital rules quietly decide which tokenised markets banks will make.
Opinion of the Democratize editorial team.
What to watch: Alignment with Basel cryptoasset standards.
Sources
- Bank of England · Letter on the prudential treatment of tokenised assets, stablecoins, and other cryptoasset exposures · Monday, 18 May 2026 Regulator
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Token+ Intel desk
Claudia Harken
Head of Marketing and Communications
Claudia Harken leads marketing and communications at Democratize.