Bank of England Tests Digital Pound with Polygon in Cross-Border Trade Finance Trial
The Bank of England is testing how a digital pound could work alongside stablecoins in cross-border trade finance, bringing Polygon Labs into the next stage of its experimental program. The project focuses on small-business payments, digital identity, and settlement rather than a live launch of central bank digital currency.
The trial will link stablecoins with digital pounds, allowing for faster payment cycles and freeing up working capital. SMEs could reuse verified financial profiles, making it easier for lenders to assess creditworthiness.
The consortium includes NOBO Finance, Dun & Bradstreet, and Polygon Labs, with Polygon supplying wallets, smart contracts, and stablecoin settlement through its Open Money Stack.
The tests use simulated money and involve no real customers, allowing the participants to examine payment flows without exposing the financial system to live transactions. The Bank of England has repeatedly described the Lab as a testing environment designed to inform a later decision on whether a retail CBDC should be built.