Crypto and stablecoins in charitable giving: opportunities, barriers, and what comes next

Crypto giving is changing, and new UK regulations are set to make it safer and more trusted. We spoke to Zodia Markets (opens in a new tab), backed by Standard Chartered, to understand what the Treasury’s upcoming rules could mean for charities, donors, and the future of crypto giving in the UK. Read expert insights below by Zodia Market's Bharvi Hadani, on how confidence in this growing area of fundraising could soon be strengthened.

Could you tell us a bit about Zodia Markets and your role there?

Zodia Markets is a digital asset trading business that sits at the intersection of traditional finance and the evolving crypto economy. Backed by Standard Chartered, we provide institutions with secure, compliant access to digital assets all with the rigour, governance, and risk controls you’d expect from a regulated financial services firm.

As Chief Operating Officer, I’m responsible for ensuring our operations are robust and scalable, making sure our infrastructure, controls, and day-to-day execution are fit-for-purpose as the market matures. My focus is on making sure our infrastructure and processes support responsible growth as regulation evolves and new sectors, including charities, begin exploring how to engage with digital assets.

What opportunities do you see for crypto giving within the charitable sector?

Crypto giving unlocks powerful opportunities for the charitable sector. Firstly, it can help charities tap into a new generation of donors. People who hold digital assets are often younger, globally connected, and expect transparency and speed when giving.

Secondly, crypto enables faster, borderless donations, which is critical for charities operating internationally or responding to crises where traditional banking is costly or slow.

One of the most promising tools here is stablecoins, cryptoassets pegged to traditional currencies like the US dollar or pound. Stablecoins combine the transparency and efficiency of blockchain with price stability, so charities can avoid the volatility that’s long been a barrier to crypto giving.

Only a small number of UK charities are involved in this type of giving. What are the main barriers?

There are four key barriers:

• Awareness: Many charities simply don’t know where to start. There’s still a significant knowledge gap around how crypto and especially stablecoins, can be used safely and practically for fundraising.
• Trustee caution: Trustees have a legal duty to protect the charity’s assets and reputation. Without clear guidance, professional support, or trusted partners, most boards understandably hesitate. Negative headlines about scams or volatility add to that caution, even though stablecoins reduce many of those risks.
• Skills gap: Even when charities are open to crypto, they often lack the technical skills to manage wallets, handle custody, or maintain compliance with evolving regulations.
• Gift Aid: Gift Aid only applies to cash donations, not gifts of crypto. This means charities miss out on a 25% top-up unless the crypto is first converted to GBP which adds cost and complexity.

Together, these barriers explain why uptake is currently low. But regulatory clarity, safe third-party services, and better education for boards could dramatically shift this landscape.

What impact might upcoming regulation have on charitable crypto giving?

Proposed rules (opens in a new tab) under the Financial Services and Markets Act 2023 are set to bring crypto firmly under the Financial Conduct Authority (FCA). This includes tighter standards around how stablecoins are backed, how customer funds are safeguarded, and how crypto is promoted to the public.

For charities, this means the ecosystem is becoming safer and more transparent. The firms handling crypto whether for custody, conversion, or donation platforms will need to meet proper regulatory standards. That includes holding assets securely, keeping client funds separate, and maintaining adequate governance and risk controls.

It also helps address one of the biggest concerns for trustees: how to protect the charity’s assets and reputation. With FCA oversight in place, trustees can choose regulated partners and feel more confident that the charity is acting responsibly.

While the rules are still being finalised, they lay the groundwork for crypto, and especially stablecoins, to become a more trusted option for charitable giving.

The aim of the new legislation is to improve consumer protection. What does that look like?

The upcoming rules are designed to make the crypto space safer for everyone including donors and the charities that might receive crypto donations.

For example, stablecoins, which are one of the most practical tools for crypto giving, will have to be properly backed by high-quality assets. These reserves must be held in separate trust accounts, so they’re protected even if the issuing firm runs into trouble.

Firms that hold or manage crypto on behalf of others will also face new requirements. They’ll need to meet clear standards around capital, liquidity, and operational risk, similar to what’s already expected of traditional financial institutions.

In practice, charities can already choose to work with crypto providers, and some do. But for many, especially those with cautious boards or limited in-house expertise, the lack of regulatory clarity has been a barrier. The new rules are likely to provide a greater level of comfort and assurance for trustees; by setting clear expectations around how crypto firms should operate, protect client funds, and manage risk.

This increased oversight doesn’t just support charities, it also helps protect donors, particularly when giving through platforms that are regulated. With these safeguards in place, the overall environment for crypto giving becomes more familiar and trustworthy.

The overall result will be a more trusted environment for crypto giving, one where the same care and governance that applies to other donation methods starts to apply here too.

For the National Emergencies Trust, crypto and stablecoin donations could become a valuable part of our future fundraising, for rapid disaster response and engaging a new generation of supporters.

By choosing to donate your cryptocurrency, you are helping the Trust:

• Respond faster in times of crisis
• Reach new supporters worldwide
• Build resilient funding for future emergencies

You can support those impacted by disasters with crypto donations through The Giving Block (opens in a new tab).