BoE Experiment Tests Stablecoins and Digital Pound for Cross-Border Payments

The Bank of England's Digital Pound Lab is conducting an experiment to test whether stablecoins and a digital British pound can work together in cross-border payments. The project, announced on Wednesday, pairs a stablecoin payment with simulated digital pound settlement by a UK importer in a single workflow.

The participating companies, NOBO Finance, Dun & Bradstreet, and Polygon Labs, are using simulated systems and no real customers or money. This approach allows them to test the practical mechanics of payments timing without any actual financial risks.

The focus is on addressing a long-standing trade finance problem where exporters may wait days after shipment to receive payment, tying up working capital. By testing tokenized settlement models, the lab aims to assess whether they can reduce friction in cross-border trade.