Bank of England Digital Pound Lab Expands Phase 2 with NOBO, Dun & Bradstreet, and Polygon Labs
The Bank of England’s Digital Pound Lab has chosen a consortium of NOBO Finance, Dun & Bradstreet, and Polygon Labs for Phase 2 of its experimental programme. The initiative explores how stablecoins and a potential digital pound could enhance cross-border trade finance. NOBO, a UK fintech focused on SME trade finance, previously completed Phase 1 alone, showcasing conditional B2B escrow payments. Phase 2 expands this work into a full settlement and identity stack, integrating Dun & Bradstreet’s commercial intelligence and Polygon Labs’ smart contract technology.
The consortium will tackle two key workstreams. The first, led by NOBO, aims to create an SME Bankable Profile using transaction data, open finance signals, and Dun & Bradstreet’s D&B Commercial Graph. Polygon Labs will provide the smart contract layer to manage verifiable credentials and deal lifecycles. The second workstream tests an electronic bill of lading-backed invoice factoring flow, enabling exporters to receive stablecoin advances while importers settle in digital pounds.
Ayo Ojerinola, CEO of NOBO Finance, highlighted the need for better coordination in trade finance, stating that the Digital Pound Lab offers a safe environment to innovate. The pilot addresses the global trade finance gap, which disproportionately affects SMEs due to slow settlements and stringent credit requirements. The programme aligns with broader efforts by central banks to modernise payment infrastructure using programmable money and tokenised assets.
The Bank of England has not committed to issuing a digital pound, and the lab operates as a controlled environment for exploratory work. NOBO’s inclusion in Phase 2 signals regulatory validation, though no commercial licence or live deployment is involved. The next steps include publishing Phase 2 findings and potentially pursuing a regulated product path based on the results.