Bank of England Tests Stablecoins and Digital Pound in Cross-Border Trade Pilot

The Bank of England is testing stablecoins and a notional digital British pound in a cross-border trade pilot, as part of its Digital Pound Lab experiment.

The project involves NOBO Finance, Dun & Bradstreet, and Polygon Labs, with the goal of reducing delays and cash-flow pressure on small and medium-sized businesses.

The trial uses simulated digital pounds for settlement, without real customers or money, and is not intended as a signal for future policy.

The Bank of England has proposed draft rules for sterling-denominated stablecoins considered systemic to the UK financial system, including a 40 billion pound issuance cap and reserve requirements.