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

The Bank of England's Digital Pound Lab has launched an experiment to test the use of stablecoins and a potential digital British pound in cross-border trade payments.

The trial, which involves NOBO Finance, Dun & Bradstreet, and Polygon Labs, aims to assess whether different digital payment components can operate together within a realistic cross-border trade workflow.

According to the Bank of England, the experiment focuses on the practical mechanics of payment timing, particularly the point at which trade finance is released and how long settlement takes.

The project uses simulated systems, with no real customers or money involved. The goal is to test whether tokenized settlement could reduce friction that slows down trade, benefiting exporters, especially smaller businesses.