BoE Tests Digital Currency and Stablecoin for Cross-Border Trade

The Bank of England is exploring ways to improve cross-border trade finance through the development of a central bank digital currency (CBDC) and private stablecoins.

The Digital Pound Lab, launched in August 2025, is testing how these two concepts can coexist to make international payments faster and cheaper for small and medium-sized enterprises.

A Phase 1 showcase on January 15, 2026 demonstrated a working use case: NOBO Finance and Applied Blockchain executed conditional business-to-business payments on a simulated digital pound ledger using atomic swaps and smart contracts.

The system is built on Hyperledger Besu and integrates distributed ledger technology with programmable money to automate trade finance processes.