Regulators in the UK and EU have been busy shaping new expectations for the fintech and payments sector. The focus this month is on stablecoins, payments infrastructure, consumer protection and the growing divergence between UK and EU regulatory paths. The result is a landscape that keeps expanding in complexity, but also one that provides clearer signals for founders planning their next steps.

The UK moves closer to a stablecoin framework

The Bank of England has opened a consultation on a future regime for systemic stablecoins. The plan is to introduce backing asset requirements along with temporary limits on holdings and other controls that help manage transition risks. The consultation remains open until February 2026 and further proposals are expected next year. Final rules are likely to arrive later in 2026.

The Financial Conduct Authority has also outlined how it intends to supervise cryptoassets and stablecoins. Firms can expect future rules on market abuse, disclosure, prudential obligations and consumer protection. The FCA has also invited firms to join a stablecoin cohort inside its Regulatory Sandbox. Applications close in January 2026 and practical testing is expected to begin soon after.

Both steps make it clear that the UK is moving from high level signals to detailed frameworks. For stablecoin issuers and service providers this means preparation needs to begin now rather than later.

A long term vision for UK payments

Alongside the crypto developments, UK regulators have presented a new strategy for the future of retail payments. The goal is to upgrade the foundation beneath account to account payments and support new types of digital money, including tokenised deposits and stablecoins. The strategy also focuses on resilience, data sharing and innovation. A more detailed Payments Forward Plan is due by the end of the year and will set the agenda for the next stage of infrastructure change.

As of 3 December 2025 there is also a practical update for Buy Now Pay Later providers. Domestic suppliers offering interest free BNPL arrangements no longer require credit broking permissions under changes to the Financial Services and Markets Act 2000. This simplifies the regulatory burden for certain firms that work only with interest free products.

Diverging UK and EU paths

Across the EU, payments and fintech firms continue to deal with rising complexity around compliance, resilience and consumer protection. The EU remains focused on harmonised regulation through instruments such as PSD2 and resilience rules tied to digital operations.

The UK, by contrast, is developing its own approach to stablecoins and payments infrastructure. The difference in direction is becoming clearer and will matter for firms active in both markets. A single operating model will become harder to maintain and cross border strategies will need more flexibility.

Key takeaways for fintech startups

A quick overview before wrapping up.

• The Bank of England is moving toward a defined regime for systemic stablecoins, so preparation is essential.
  
  
• The UK payments infrastructure strategy will shape opportunities in account to account and digital money services.
  
  
• Interest free BNPL providers may benefit from reduced permissions requirements.
  
  
• Firms operating in both the UK and EU need to plan for growing regulatory divergence.
  
  

If you want help navigating these changes or adjusting your strategy in a shifting regulatory environment, Your Fintech Story is here to support your next move.

Wealthfront has filed to go public in the United States. The company plans to sell 34.6 million shares at a price between 12 and 14 dollars, which could raise up to 485 million dollars. At the top of that range, the offering would value the digital wealth platform at about 2.05 billion dollars. It will trade on Nasdaq under the ticker WLTH.

What Wealthfront does

Wealthfront was founded in 2008 as a robo advisor. Over time it expanded into a broader digital wealth management service. Clients can access automated ETF portfolios, bond strategies, cash accounts, and low cost credit products.

The company has positioned itself strongly toward younger investors. Its filing highlights a customer base that skews toward Millennials and Gen Z, who gravitate to automated tools with simple, transparent pricing.

Why the timing matters

Appetite for fintech IPOs has improved in 2025. Several companies in the sector have listed successfully this year. Part of the rebound is linked to expectations of potential U.S. interest rate cuts, which generally create a more supportive environment for growth stocks.

Market analysts also note that Wealthfront sits in a category investors currently understand well. Automation, portfolio simplification, and AI supported investment tools have become recurring themes in public market conversations.

The journey to this point

In 2022, Wealthfront agreed to a takeover deal with UBS that valued the company at 1.4 billion dollars. That deal was canceled after shareholder pushback.

The planned IPO now marks a return to independent growth ambitions, at a valuation target above the abandoned acquisition. The offering includes new shares issued by the company along with shares sold by existing investors. Major underwriters include Goldman Sachs, J.P. Morgan, and Citigroup.

What this signals for fintech

Wealthfront’s move to public markets suggests renewed confidence in digital wealth management. If the listing performs well, it may encourage other fintech firms to revisit IPO plans that were paused during the slower market of the past few years.

It also reinforces investor interest in businesses that combine automation, clarity, and long term customer economics rather than experimental revenue models.

Here are the key points founders should take from this story.

Key takeaways for fintech startups

A short introduction before the bullets helps set the scene for practical lessons.

• A canceled acquisition does not close the door on future public listings if fundamentals remain strong.
  
  
• A clearly defined target audience helps investors follow the growth thesis.
  
  
• Simplicity in product design can still drive investor interest when supported by solid economics.
  
  
• Market timing is real. Public market windows open and close, and strategy should acknowledge that.
  

If your fintech is assessing growth pathways or considering future fundraising milestones, Your Fintech Story can help you evaluate your options and shape a clear narrative for investors. Reach out if you want support in planning your next stage.

Zepz, the company behind Sendwave and WorldRemit, has introduced a new Visa card that allows users to spend directly from stablecoin balances. The feature is powered by Bridge, a stablecoin infrastructure platform owned by Stripe. It sits on top of the recently launched Sendwave Wallet, which became available in October 2025 across more than 100 countries. The goal is to make digital dollar balances as easy to use as a traditional payment card.

Stablecoins in the wallet are designed to keep a stable value, which removes the volatility that normally worries first time crypto users. The idea is simple. Customers hold digital dollars, move them across borders at speed, and now spend them in shops without having to think about conversions or crypto mechanics.

When a user taps their card at a merchant, the system automatically converts the stablecoin balance into local currency. The merchant receives a standard Visa payment. The entire crypto layer remains invisible to the customer, which is likely the point. Zepz wants this to feel like a normal payment experience that happens to rely on a modern settlement system underneath.

The rollout is not limited to early test markets. Zepz has signalled plans to expand access to the United States, Canada and Australia. Some markets, including Brazil, are expected to see the first cards appear in early 2026. It shows that Zepz views the card as a strategic piece of the Sendwave ecosystem rather than a niche add on.

Why this matters

For Sendwave users, the card shifts the product from a remittance tool to something closer to a multi purpose financial account. Many users already rely on digital dollars for stability. Giving them a way to spend those balances directly broadens the usefulness of the wallet.

For Zepz, this is a move toward a more complete financial experience. The company has always focused on helping people move money across borders. The card adds the final step in that journey. Receive funds, hold them securely, then spend anywhere Visa is accepted.

For the wider payments industry, the collaboration signals growing acceptance of stablecoins as a viable settlement layer. Visa has been openly supportive of stablecoin based payment products. Stripe has invested in infrastructure that makes conversions fast and predictable. The fact that mainstream players are now enabling everyday use cases gives the category more credibility.

What to watch

Regulation will influence how quickly products like this scale. Different regions treat digital assets differently, and card programs must navigate those regimes carefully.

User trust is another factor. Stablecoins remove volatility, but many consumers still associate anything crypto related with risk. The more Zepz keeps the experience simple and familiar, the better the adoption curve will look.

Finally, the reliability of the underlying conversion infrastructure matters. Users expect payments to work every time. Transparent fees and clear conversion rates will be essential as the product reaches more markets.

Key takeaways for fintech startups

Here are a few points that stand out for founders working on payments and wallets.

• A stablecoin card can turn a remittance app into a daily spending tool
  
  
• Automatic fiat conversion at checkout is the usability lever that makes the product viable
  
  
• Multi market rollout depends on regulatory clarity and licensing readiness
  
  
• Partnerships can accelerate time to market far more than building card infrastructure internally

If you want help designing or refining a digital wallet or card strategy for your fintech, Your Fintech Story can support you with product, positioning and go to market planning. Let us know what you are building and we will help you grow it with confidence.

A group of ten European banks has created a new company in Amsterdam that intends to issue a euro stablecoin. The group includes ING and UniCredit, with BNP Paribas joining later in the process. The aim is to offer a digital euro token that sits within a fully regulated financial framework. The move reflects a broader effort from the banking sector to build European control over digital payments and reduce reliance on dollar based stablecoins.

The company will operate under the name Qivalis. It is led by Jan Oliver Sell as chief executive. He previously worked in senior positions in the crypto industry. Floris Lugt from ING will serve as chief financial officer. Howard Davies, a well known figure in financial regulation and former chair of a major UK bank, will act as chair of the board. Qivalis plans to launch its euro stablecoin in the second half of 2026, subject to approval of an Electronic Money Institution licence from the Dutch central bank.

Why this announcement matters

Dollar stablecoins dominate global digital payments and crypto trading. The euro plays a much smaller role. A regulated, bank issued euro token could change the balance, at least within Europe. It gives banks a way to participate directly in digital asset infrastructure rather than watching that space develop around them.

The project is positioned as a payments tool. The stablecoin is meant to support cross border transactions, settlement processes, and faster transfers. The first use cases may still come from the crypto trading environment, since market participants there already have established behaviour around stablecoins. The long term goal is broader adoption across financial services.

The regulatory landscape

The timing places Qivalis inside a complex regulatory moment. European rules for digital assets and stablecoins have tightened in recent years. Any bank backed stablecoin will face detailed expectations around liquidity, reserves, transparency, redemption, and operational resilience.

There is also the backdrop of the digital euro project. The European Central Bank has been exploring a central bank digital currency. If both products reach the market, Europe could end up with a public sector digital euro alongside a private sector stablecoin. That would raise strategic questions about overlap, consumer adoption, and technical interoperability. Banks will need to explain clearly how Qivalis differs from a potential digital euro and how it fits into existing payment systems.

What happens next

The main milestone is the licence application. Without authorisation from the Dutch central bank, the stablecoin cannot launch. The banks will also need to build supporting infrastructure for issuance and redemption. How they design these rails will influence adoption. Trust will play a central role. Stablecoin users expect clarity on reserves, operational reliability, and the ability to redeem tokens at face value at any time.

Key takeaways for fintech startups

• A regulated euro stablecoin could create new payment and settlement options for European fintechs.
  
  
• Any product built on top of such a stablecoin will need strong compliance alignment with European digital asset rules.
  
  
• Startups should monitor how banks design access, interoperability, and redemption. These details affect product strategy.
  
  
• If euro stablecoin demand grows, it may create room for new services around cross border transactions and treasury optimisation.

If you want support analysing how a bank issued euro stablecoin might shape your fintech strategy or product roadmap, Your Fintech Story can help you plan your next steps.