The UK Treasury has announced a new regulatory framework to integrate stablecoins and tokenized deposits into the existing financial system. Revealed at the London FinTech Festival, the framework aims to regulate stablecoins used for payments under a forthcoming issuance regime, while expanding the Financial Conduct Authority's (FCA) oversight of open banking. Additionally, the proposal considers regulatory adjustments for payment activities conducted by AI agents. The initiative includes appointing Chris Woolard CBE as Wholesale Digital Markets Enabler to advance a tokenized wholesale financial system. The UK government has committed £1 million in funding to support the Financial Innovation and Technology Hub, starting in April. City Minister Lucy Rigby emphasized the goal of creating a secure, competitive payment ecosystem that leverages technological advancements.