Bank of England Digital Pound Lab tests stablecoin and digital currency for SME trade finance

The Bank of England is running tests in its Digital Pound Lab involving stablecoin and digital currency infrastructure, with an emphasis on trade finance workflows for small and medium-sized enterprises (SMEs). The program is designed to assess whether stablecoins and a future digital pound can function within the same payment process, including interoperability for cross-border business payments ^{[1] [2] [3]}.

Polygon Labs is among the partners participating in the lab’s Phase 2, alongside NOBO Finance and Dun & Bradstreet, according to reports citing company statements. The testing is described as using no real customers or money, focusing instead on evaluating future payment infrastructure that could combine public and private digital money systems ^{[2] [4] [5]}.

Bank of England reporting indicates the Digital Pound Lab trial is focused on practical interoperability between stablecoins and a potential digital pound in trade finance, using partner infrastructure and simulation rather than live customer funds ^{[1] [2] [3]}.