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Bank of England sets GBP £40 billion stablecoin guardrail

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KAREN JOY BACUDO

Finance Editor

The Bank of England has published a policy statement and draft rules for systemic stablecoin issuers, advancing the UK’s regime for sterling-denominated stablecoins.

The framework sets out how issuers of systemic stablecoins would be regulated as these digital tokens take on a larger role in payments. It covers stablecoins that could become significant enough to pose risks to financial stability if their design or operation were to fail.

The publication follows consultation with industry and other stakeholders and includes revisions to proposals issued last year. One of the main changes is an increase in the maximum share of backing assets that may be held in interest-bearing assets – specifically short-term UK government debt – to 70% from 60%.

The remaining backing assets would need to be held in central bank deposits to help issuers meet redemption requests promptly.

Another significant change concerns growth limits. Instead of the temporary holding limits proposed earlier, the Bank would introduce a temporary issuance guardrail for each systemic stablecoin.

The initial level for that guardrail would be set at GBP £40 billion. The measure is intended to protect the economy’s access to credit while allowing households and businesses to use stablecoins without restrictions.

Rule changes

The issuance guardrail would be reviewed regularly and removed once risks to credit provision had been addressed. That marks a shift from earlier proposals, which focused on restricting the amount individuals or businesses could hold.

Officials are also working with the Financial Conduct Authority on what the Bank described as an end-to-end regime. This includes arrangements for firms moving from non-systemic status, in which they would be supervised solely by the FCA, to systemic status, in which the Bank would assume a direct role.

The division of responsibilities is a key feature of the framework. Stablecoins used for non-systemic purposes, including buying and selling cryptoassets, would remain outside the Bank’s regime and be supervised only by the FCA.

Under the Banking Act 2009, HM Treasury decides whether to recognise a payment system as systemic. That judgment depends on whether weaknesses in its design, or disruptions to its operation, could threaten financial stability, undermine confidence in the UK financial system, or have serious consequences for businesses and other interests across the country.

Payments focus

Stablecoins are digital tokens designed to maintain a stable value, typically by being backed by assets. Policymakers have examined them as a possible way to support payment services, including cross-border transactions, while raising questions about redemption, liquidity and their wider effect on the financial system.

The latest package is intended to give issuers clearer conditions for growing in the UK while preserving confidence in money. The Bank also linked the work to the government’s broader strategy for the payments sector.

Sarah Breeden outlined the Bank’s view of the package in a statement accompanying the announcement.

“This is a major milestone in delivering greater choice and innovation in UK payments. Innovation thrives on trust. And today we’ve set out the foundations of that trust for a new form of money – with prompt redemption, strong protections and central bank support. This is truly a world-leading regime,” said Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England.

The Bank will consider feedback on the draft code before finalising the framework. It intends to complete the Code of Practise by the end of the year, with further material to follow as joint work with the FCA continues.

The publication provides the clearest indication yet of how the UK plans to regulate stablecoins that become significant enough to affect the wider payments system. A central feature of that approach is the requirement for systemic issuers to hold backing assets in short-term UK government debt and central bank deposits, while operating under a temporary GBP £40 billion issuance guardrail.



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Business & Technology

Apex Computing Services wins Investors in People Platinum

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Apex Computing Services has achieved Investors in People Platinum accreditation, the highest level in the framework.

The accreditation marks a step up for the Manchester-based IT company, which held Silver status three years ago. The latest assessment recognised its approach to staff development, workplace culture and organisational structure.

Apex provides IT support, cyber security, cloud, Microsoft Modern Workplace, AI and automation services to organisations across Greater Manchester and the wider North West. The accreditation reflects changes made since its last review, including work to strengthen leadership, define a longer-term strategy and create a more measurable structure.

The business has also placed greater emphasis on embedding its five core values into daily operations. Those values – Customer Focused, Reliable, Act With Integrity, Always a Team and Enable Growth – are now used across recruitment, onboarding, performance reviews, one-to-ones, recognition and decision-making.

People focus

Apex said it had created 29 development opportunities since 2023 through internal progression, apprenticeships and secondments. It has also set aside time for self-development, invested in accreditations, expanded wellbeing support and introduced a more structured approach to personal development.

Employee survey results also formed part of the assessment. According to Apex, 92% of staff said they were proud to work for the company and 93% said they would recommend it as a great place to work.

Chris Gorman, Chief Executive Officer at Apex Computing Services, said: “Achieving Platinum is something we are incredibly proud of because it recognises the culture we have built together. It shows that putting people first isn’t just something we talk about – it’s how we operate every day.

“Our people are the business. Technology changes constantly, but it is the knowledge, commitment and relationships our team builds with clients that make the difference. By investing in development, wellbeing and opportunities to progress, we are investing in better outcomes for our clients and a stronger future for Apex.

“What I am most proud of is how people genuinely support one another. There is a real willingness to collaborate, share knowledge and step in to help when needed. We have built a culture where people are trusted, encouraged to grow and celebrated for their successes, and that is what makes Apex such a great place to work.”

Assessment standard

Investors in People assesses organisations on how they lead, support and develop employees. Platinum is its highest accreditation level, recognising employers that meet its top standard.

For Apex, the latest result serves as an external benchmark as it continues to expand in the competitive regional market for managed IT and technology services. The business linked the accreditation to its aim of developing staff while growing the company.

Daniel Shone, Managing Director at Apex Computing Services, said the accreditation was part of a wider process rather than an endpoint.

“Achieving Platinum is not the finish line. It confirms that we are moving in the right direction and challenges us to keep raising the bar. As Apex continues to grow, we will stay focused on developing our people, strengthening leadership, supporting wellbeing, creating opportunity from within and making sure our team grows with the business.

“This achievement belongs to everyone at Apex. We are incredibly proud of what we have built together and even more excited about what comes next.”



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UK shoppers frustrated by AI retail personalisation

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Quickfire Digital has published UK research showing widespread consumer frustration with AI-driven online shopping. The study also found that most retailers have delayed planned eCommerce improvements.

Nearly half of consumers surveyed (45%) said they were frustrated by AI-powered shopping experiences, citing generic recommendations, poor search results, and suggestions for out-of-stock products.

A similar share, 44%, said they were frustrated by personalisation more broadly. Complaints included repeated recommendations, irrelevant product suggestions and a sense that brands did not understand their preferences.

Among retailers, 84% said eCommerce improvements had either been delayed or not delivered in the past year. The survey found that 40% blamed budget pressures, while 25% cited security requirements and 23% pointed to fragmented data.

Another pressure point was the cost of maintaining older systems. Two in five retailers said they were spending more than a quarter of their eCommerce budgets on existing platforms, leaving less for changes to customer-facing services.

Retail gap

The findings suggest a mismatch between retailers’ spending priorities and shoppers’ experiences. Quickfire Digital argued that legacy technology and heavily customised eCommerce systems are making it harder for businesses to respond to customer demands, even as more retailers increase their use of AI.

The agency also pointed to separate research published earlier this year showing that 52% of retailers were adopting more AI to drive revenue. That sits alongside the new consumer findings, which indicate dissatisfaction with how the technology is being applied in online retail.

Martin Harper, Co-Founder at Quickfire Digital, set out the agency’s argument in response to the data.

“Right now, as retailers continue to invest heavily in AI and customer experience tools, most of the industry narrative we’re seeing is ‘AI personalisation = good’. But our data is actually challenging that and revealing something no one is talking about: mid-market and enterprise brands are stunting their own growth because they refuse to abandon their legacy or custom-built tech stacks.

“If retailers’ existing systems cannot support the pace of change they need to keep up with consumer expectations, AI may instead be actively putting consumers off.

“It’s also interesting to see a significant amount of the eCommerce budget being spent simply to keep legacy and heavily customised platforms running. Retailers know they need to make meaningful improvements for their consumers, but this hidden ‘Growth Tax’ being paid by retailers who prioritise owning their infrastructure over commercial agility is trapping them.

“This is one of the biggest challenges facing retail businesses, because without the right infrastructure in place, even the best customer experience strategy and AI tools will struggle to deliver results.”

Owned channels

The research also looked at how shoppers prefer to find products online. It found that 45% preferred to search directly on retailer websites, compared with 16% who preferred discovery through social media and content creators.

That finding runs counter to the idea that social commerce and third-party platforms are replacing retailers’ own digital storefronts as the primary destination for browsing and buying. For retailers weighing investment choices, it suggests their own websites remain central to the customer journey.

Harper also commented on that trend.

“Despite all the industry noise around social commerce, marketplaces, AI shopping assistants, discovery on TikTok, Instagram, etc, consumers are still saying the retailer’s own website is the main and most trusted place they use to find and buy products. For retailers who’ve over-invested in social or marketplace channels at the expense of their own site, this insight is a real wake-up call.”

The surveys were conducted among 2,028 UK adult consumers and 201 eCommerce retailers with at least 10 employees.

With consumers reporting frustration with both AI shopping tools and broader personalisation efforts, the research points to a more basic problem than the adoption of any single technology. Many retailers appear to be struggling to fix search, stock visibility and relevance on their existing sites before adding further layers of automation.

Retailer responses also suggest operational constraints are slowing that work. Budget pressure was the most common barrier to planned eCommerce improvements, but security demands and fragmented data also featured prominently, indicating that many businesses face overlapping obstacles.

For mid-sized and larger retailers in particular, the findings illustrate the cost of maintaining complex eCommerce estates while trying to meet rising customer expectations. Forty per cent said they were using more than a quarter of their eCommerce budgets simply to keep existing systems running.



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Oxfordshire swim school boss recognised at conference

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Beccy Stenson, franchise owner of Puddle Ducks Oxfordshire, received two accolades at the conference, marking 15 years of running the business and earning a highly commended mention in the Franchisee of the Year category.

She said: “To be recognised for 15 years in business was special enough, but to also be Highly Commended in the Franchisee of the Year category made the conference even more memorable.

“Puddle Ducks Oxfordshire has been such a huge part of my life, and it is a really proud moment to see how far the business has come.”

Puddle Ducks Oxfordshire operates at 17 pools across Oxfordshire and the surrounding areas, including Oxford, Abingdon, Swindon, Cirencester and Tetbury.

The business employs 39 team members and teaches nearly 1,300 children each week.

Ms Stenson said: “When I launched Puddle Ducks Oxfordshire, I wanted to create a swim school where families felt supported and children felt confident and happy in the water.

“Fifteen years later, that purpose is still at the heart of everything we do, and I’m so proud of the team, the relationships we’ve built with our pools, and the trust local families continue to place in us.”

The conference recognition follows a birthday celebration in Uffington, where families, pool partners and team members gathered to mark 15 years of the swim school.

The event included a visit from Puddle the Duck.

More information is available at puddleducks.com/local-teams/oxfordshire.





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