Bank of England Tests Stablecoin, Digital Pound Payments
The test also explores reusable credit profiles for small firms by combining transaction data, open-finance information and commercial risk data, the companies said.
- On Wednesday, the Digital Pound Lab announced an experiment testing stablecoins and a digital pound in cross-border trade involving NOBO Finance, Dun, Bradstreet, and Polygon Labs. An exporter receives stablecoin advances while a UK importer settles using simulated digital pounds.
- Exporters often wait days to receive payment after shipping goods, tying up working capital and creating financing constraints for small- and medium-sized businesses. This experiment aims to reduce settlement delays and eliminate the capital constraints that hinder cross-border trade for smaller firms.
- A separate workstream creates reusable credit profiles for small businesses by combining transaction data with Dun and Bradstreet's commercial risk information. Polygon Labs provides the smart contract infrastructure to support this integration and enable smoother financing access.
- The Digital Pound Lab utilizes no real money or customers, and the Bank has not committed to issuing a digital pound. Participant-designed experiments should not be interpreted as indications of future bank policy or endorsements of participating companies.
- UK regulators are developing frameworks for systemic stablecoins, proposing a 70% reserve requirement and a 40-billion-pound issuance cap. The BoE aims to finalize rules by 2026 while modernizing payment infrastructure through near-24/7 RTGS operations and the Digital Securities Sandbox.
22 Articles
22 Articles
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Russia created largest non-dollar stablecoin – bank boss
The ruble-linked A7A5 has reached nearly $140 billion in turnover since its creation, PSB chairman Pyotr Fradkov has said Russia has created the largest stablecoin not pegged to the US dollar through its A7 cross-border payment system, the chairman of Promsvyazbank (PSB), Pyotr Fradkov, has said. PSB launched A7 in October 2024 in response to...
Bank of England taps Polygon consortium for digital pound trade finance tests
NOBO Finance, Dun & Bradstreet and Polygon Labs have joined Phase 2 of the Bank of England’s Digital Pound Lab to test SME trade finance flows that combine stablecoin payments, digital pound settlement and reusable business identity. According to a…
CoinStats - The Bank of England Tests Interoperability Be...
The Bank of England is already preparing the coexistence between stablecoins and the digital pound. Its Digital Pound Lab is testing a cross-border payment where an exporter receives an advance in stablecoin before a British importer settles the transaction with simulated digital pounds. However, London has still not decided to launch its CBDC. L’article The Bank of England Tests Interoperability Between Stablecoins and Digital Pound in Cross-Bo…
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