BoE Tests Stablecoins and Digital Pounds in Cross-Border Payments Trial

The Bank of England's Digital Pound Lab is conducting an experiment to test whether stablecoins and digital pounds can be used together in cross-border trade payments. The trial, which involves NOBO Finance, Dun & Bradstreet, and Polygon Labs, aims to reduce delays and cash-flow pressure on small and medium-sized businesses.

The project uses a stablecoin-based 'rail' for exporters to receive advances, while UK importers use simulated digital pounds for settlement. This pairing is designed to demonstrate how stablecoin payment mechanics can coexist with central-bank-style settlement layers in a controlled testing environment.

The lab also focuses on generating reusable credit profiles for small businesses using transaction data and open-finance inputs. This effort combines data from Dun & Bradstreet's commercial risk assessments, Polygon Labs' smart contract infrastructure, and other sources to create a standardized assessment process.