Bank of England Selects Polygon Labs for Digital Pound Lab

The Bank of England has selected three companies to participate in the next phase of its Digital Pound Lab, aiming to improve cross-border trade finance for small businesses. Polygon Labs, NOBO Finance, and Dun & Bradstreet will collaborate on two projects: creating a profile for SMEs called the SME Bankable Profile, and testing early payments on invoices using electronic shipping documents as collateral.

The current manual verification process is slow and costly, causing cash flow problems for smaller companies. This digital solution aims to address this issue by enabling different forms of digital money to work together.

Polygon Labs will provide smart contracts and handle the stablecoin portion of the second project. The first project combines data from wallet transaction signals, open-finance data, and Dun & Bradstreet's commercial records to create a profile that SMEs can carry between lenders, reducing paperwork and verification time.