Bank of England pilots digital pound with Polygon Labs

The Bank of England, NOBO, Dun & Bradstreet, and Polygon Labs are piloting digital pound and stablecoin interoperability to improve cross-border trade finance and SME credit verification.

The Bank of England has moved its Digital Pound Lab initiative into a new phase, partnering with NOBO Finance, Dun & Bradstreet, and Polygon Labs. This collaboration aims to test the interoperability of stablecoins and a potential digital pound to enhance cross-border trade finance, with a focus on supporting small and medium enterprises (SMEs). The experimental platform enables participants to prototype digital wallets, process online and in-store payments, and utilize QR and NFC transactions. It also supports programmable and conditional payments, refunds, authentication, and privacy tools. Polygon Labs supplies blockchain infrastructure for stablecoin transactions and smart contract execution, while Dun & Bradstreet offers commercial intelligence for SME credit verification. This initiative explores whether faster settlement and reusable business credentials can lower financing barriers for smaller firms. The trials do not involve real customers or funds and are designed to assess how different digital currencies could be integrated into payment systems and trade finance.