Bank of England Collaborates with NOBO, Polygon Labs, and Dun & Bradstreet for Digital Pound Pilot

The Bank of England (BoE) has initiated the second phase of its Digital Pound Lab, involving NOBO Finance, Dun & Bradstreet, and Polygon Labs. This phase aims to investigate how stablecoins and a potential digital pound can work together to improve cross-border trade finance, particularly for small and medium-sized enterprises (SMEs).

The Digital Pound Lab serves as an experimental platform where financial and technology firms can prototype various products and payment solutions for the proposed central bank digital currency (CBDC). Participants can utilize simulated infrastructure to test digital pound wallets, payment methods, and advanced transaction features.

NOBO Finance, which successfully completed Phase 1 by demonstrating conditional B2B escrow payments, will lead the new workstreams. The first track focuses on creating an SME Bankable Profile, combining wallet activity and commercial intelligence to establish a reusable credit outcome. Dun & Bradstreet will provide essential business and risk data, while Polygon Labs will offer the necessary smart-contract infrastructure.

The second workstream will explore eBL-backed invoice factoring, allowing exporters to receive financing via stablecoins while UK importers settle payments in digital pounds. Polygon Labs will facilitate this through its Open Money Stack, ensuring seamless integration across financial platforms.

Both experiments aim to enhance the efficiency of cross-border SME financing by establishing portable financial identities and enabling faster digital settlements. The collaboration underscores the importance of trust and reliable data in facilitating smoother trade finance processes.