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 completes settlement 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 working capital tie-ups that currently hinder cross-border trade.
- 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 manage consent, verification, and the lifecycle of financing deals.
- The Digital Pound Lab utilizes no real customers or money, allowing participants to test innovations without operating in a live financial environment. The Bank has not committed to issuing a digital pound, and these experiments should not be interpreted as indications of future policy.
- 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 end of 2026 while modernizing payment infrastructure through near-24/7 RTGS operations and the Digital Securities Sandbox.
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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…
Bank of England Tests Stablecoins in $290T Cross-Border Push
The Bank of England is expanding its digital currency experiments to cross-border payments, launching a test that will examine whether stablecoins and a potential digital pound can work together in the same international transaction. The experiment forms part of Phase 2 of the Bank’s Digital Pound Lab and brings together Polygon Labs, NOBO Finance and Dun & Bradstreet. The consortium will focus on trade finance for small and medium-sized busines…
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