Bank of England Tests Stablecoins and Digital Pound
BITmarkets Team
Aug 14, 2026
The project involves NOBO Finance, Dun & Bradstreet and Polygon Labs. Under the test, an exporter receives an advance payment through a stablecoin rail, while a UK importer completes settlement using simulated digital pounds, according to an announcement published Wednesday by the participating companies.
A separate part of the experiment is focused on creating reusable credit profiles for small and medium-sized businesses. The system combines transaction data, open-finance information and Dun & Bradstreet’s commercial risk data, with Polygon providing the underlying smart contract infrastructure. The initiative is intended to reduce settlement delays and financing challenges for smaller companies engaged in international trade. Exporters can often wait several days to receive payment after shipping goods, tying up working capital and increasing their dependence on trade finance.
The Digital Pound Lab does not involve real customers or actual money, and the Bank of England has not committed to launching a digital pound. The central bank has also stressed that participant-led experiments should not be interpreted as indications of future policy or as endorsements of the companies involved.
UK develops stablecoin and tokenization framework
The experiment comes as UK regulators continue building rules for stablecoins while preparing financial infrastructure for a broader shift toward tokenized assets. In June, the Bank of England published draft rules for sterling-denominated stablecoins considered systemic to the UK financial system. The proposal allows issuers to hold up to 70% of reserves in interest-bearing government debt and introduces a temporary 40-billion-pound issuance cap for each systemic stablecoin.
That cap replaced earlier proposals that would have restricted how much individuals and businesses could hold. The Bank of England plans to finalize the framework by the end of 2026, ahead of a planned 2027 rollout. Stablecoins considered systemic because of their potential impact on financial stability would fall under the central bank’s supervision, while non-systemic stablecoins would remain regulated by the Financial Conduct Authority.
Payment infrastructure modernization continues
The regulatory work is progressing alongside efforts to modernize the UK’s traditional payment and settlement infrastructure. In May, the Bank of England proposed extending the operating hours of its Real-Time Gross Settlement system and CHAPS toward near-24/7 availability, including weekends and longer daily operating periods. The changes are partly intended to support cross-border payments and emerging settlement models as tokenization develops.
In July, the central bank also approved HSBC’s Orion platform to participate in the UK’s Digital Securities Sandbox, where it is expected to support digital bond issuance, including the planned Digital Gilt Instrument.
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