Bank of England tests blockchain settlement with Chainlink

The Bank of England’s Synchronisation Lab, with Chainlink, will test blockchain-based settlement of central bank money and tokenized assets, aiming to modernize UK financial infrastructure.

The Bank of England has launched the Synchronisation Lab, a six-month initiative to explore how blockchain-based settlement tools, including Chainlink’s decentralized oracle network, can integrate with central bank infrastructure. As part of Project Meridian, the program unites 18 technology and financial organizations to test synchronized settlement models between central bank money and tokenized assets on distributed ledgers. Chainlink will demonstrate decentralized solutions for linking sterling balances with digitally issued securities, supplying real-world data to smart contracts, and enabling atomic settlement for use cases such as foreign exchange, bonds, and collateral. The lab provides a simulated environment for participants to trial advanced settlement workflows and evaluate business models. This experimental initiative involves no real funds and does not imply regulatory approval, but it represents a significant step toward modernizing the UK’s financial market infrastructure by bridging traditional finance with decentralized systems while maintaining robust risk controls.