Bank of England Tests Digital Pound Lab with Polygon Labs and NOBO Finance

The Bank of England has selected three companies to participate in the next phase of its Digital Pound Lab, a pilot project aimed at testing the feasibility and benefits of using central bank digital pounds (CBDCs) and private stablecoins for cross-border trade.

The chosen participants are Polygon Labs, NOBO Finance, and Dun & Bradstreet. They will work together to examine how CBDC-stablecoin co-settlement, tokenized payment rails, and interoperability can improve the efficiency, security, and adoption of cryptocurrencies in international trade.

The Digital Pound Lab is a key part of the Bank of England's efforts to explore the potential benefits and challenges of issuing its own digital currency. The project aims to assess how CBDCs and private stablecoins can settle different parts of the same cross-border trade deal, with a focus on co-settlement, tokenized payment rails, and interoperability.

The pilot project has entered Phase 2, which will run until at least August 12, 2026. The Bank of England is expected to provide regular updates on its progress and findings.