In a speech today, Bank of England Deputy Governor Sarah Breeden spoke about stablecoins. When the central bank announced its stablecoin program in 2023, its framework was not attractive to large or systemically important stablecoin issuers. While the good news is that they can deposit reserves with central banks, which is desirable to most, the bad news is that these reserves will not generate any interest, shaking up the prevailing business model. Bridden has previously hinted at softening that stance and made clear in today's speech that systemically important stablecoin issuers will be able to hold some of their backing assets in high-quality liquid assets, such as short-term government bonds. She also pointed out that the original stablecoin plan focused mainly on retail use cases, but that has now changed. Currently, in the UK's "Digital Securities Sandbox", both stablecoins and tokenized deposits will be used for the settlement of tokenized securities. This is a relatively new change because stablecoins were initially excluded from the sandbox.