Crypto
Bank of England Tests Stablecoin Payments with Polygon Labs
The Bank of England has launched an expansion of its Digital Pound Labs program, which aims to test the feasibility of a digital pound and stablecoin payments for cross-border trade finance.
The program brings together NOBO Finance, Dun & Bradstreet, and Polygon Labs to test new payment tools that could reduce financing friction for smaller businesses.
The goal is to create a reusable financial profile for SMEs, allowing them to present consistent information when seeking cross-border financing. This would enable lenders to make faster and more informed decisions.
The program will also explore the use of stablecoins in export finance, where an exporter could receive an advance through a stablecoin payment before final settlement.