Bank of England Tries CBDC and Stablecoin Combo for Trade Finance
The Bank of England is experimenting with a central bank digital currency (CBDC) and private stablecoins to streamline cross-border trade finance for small and medium-sized enterprises.
The Digital Pound Lab, launched in August 2025, uses Hyperledger Besu, an enterprise-grade blockchain platform, to test atomic swaps and integrate distributed ledger technology with smart contracts.
NOBO Finance demonstrated conditional B2B payments on a simulated digital pound ledger, showing that programmable money can automate trade finance processes currently involving stacks of paperwork and days of settlement delays.
The Bank's policy statement on systemic stablecoins specifies a 70/30 backing ratio for issuers to hold government debt and deposits at the Bank of England during steady-state operations. Interoperability requirements sit at the center of the framework, with sterling stablecoins needing to be technically compatible with a future digital pound.