The Bank of England launches the second phase of trials: stablecoins and the digital pound in cross-border settlements.
The Bank of England is moving to the practical phase of studying digital assets, launching the second stage of experiments under its Digital Pound Lab initiative. This is no longer just theoretical research—the regulator has brought in leading players from the infrastructure market, including Polygon Labs, NOBO Finance, and Dun & Bradstreet. The key goal is to test how effectively stablecoins and a potential central bank digital currency (CBDC) can coexist in real financial flows, particularly in the area of trade finance.
Dual-Currency Scenario
One of the test scenarios simulates a classic export-import operation. The exporter receives an advance payment in stablecoins—this ensures instant liquidity and reduces currency risks at an early stage of the transaction. The final settlement, however, is conducted in digital pounds, allowing for an assessment of the compatibility of two different forms of digital money within a single transaction chain. This approach demonstrates a hybrid model where private stablecoins and a state-issued CBDC do not compete but rather complement each other.
The choice of Polygon Labs as a technology partner signals that the Bank of England views layer-2 solutions and interoperable blockchain ecosystems as a potential foundation for future settlement infrastructure. The participation of Dun & Bradstreet, in turn, points to the importance of analyzing credit and business risks when automating trade operations.
Of particular interest is the fact that the British regulator is not limiting itself to isolated CBDC testing but is immediately modeling complex multilateral scenarios involving private stablecoin issuers. This indicates a pragmatic approach: rather than ignoring the growth of the stablecoin market, the central bank is trying to integrate it into its future monetary system.
In my view, this is one of the most promising experiments among all Western central banks. The Bank of England demonstrates a mature understanding that the future of finance lies not in choosing between CBDCs and stablecoins, but in building bridges between them. If the trials succeed, London could become the first major financial center where state-issued digital currencies and private stablecoins operate in a unified operational environment, paving the way for more efficient cross-border trade finance.