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 plannedstablecoin frameworkafter industry feedback, moving. . .
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 plannedstablecoin frameworkafter 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 LimitsThe Bank ofEngland publishedits 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 PathThe 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. 🐋 WHALE WATCH: The UK just surrendered to the stablecoin revolution. The Bank of England admitted their old crypto rules were too strict and just dropped a MASSIVE update for 2027. => Gone: The ridiculous £20k limit on personal wallets. Whales are welcome. => New: A massive…pic. twitter. com/86uG6Q7nmp— Whale Factor (@WhaleFactor)June 22, 2026Stablecoins 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. Read Also:Hyperliquid Drives Net Deflation As Daily Buybacks Outpace Rewards FlowHyperliquid and Base Lead Flow RotationAway from regulation, three-month net flow data showedHyperliquidand Base leading inflows. The same data showed Ethereum mainnet recording the largest capital outflows during the measured period. 3-month net flows are clear:Hyperliquid and Base are dominating inflows, while Ethereum is bleeding the most capital. Capital keeps rotating out of ETH mainnet into L2s and high-volume chains like Hyperliquid. Data: Artemispic. twitter. com/d2ZRBqqQ8A— Hyperliquid Hub (@Hyperliquid_Hub)June 23, 2026The 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 toDeFiand 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 andOnchainliquidity 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.