Polygon Labs Joins BOE Digital Pound Lab Phase 2 Testing

Polygon Labs enters BOE's second-phase Digital Pound Lab testing, simulating cross-border stablecoin-to-CBDC settlements and SME credit identity solutions without real funds.

Woofun AI reports that Polygon Labs has entered the second phase of testing within the Bank of England's Digital Pound Lab, alongside partners NOBO Finance and Dun & Bradstreet. The simulated environment excludes real customers and actual funds, focusing instead on cross-border settlement scenarios where exporters utilize stablecoins and importers settle in digital pounds via a unified exchange process. Polygon's Open Money Stack supports the stablecoin component, while digital pound transactions occur within the central bank's simulation.

The initiative also evaluates portable credit identity solutions for small and medium-sized enterprises, with NOBO Finance leading development, Dun & Bradstreet supplying credit data, and Polygon providing on-chain infrastructure. Polygon Labs clarified that participation does not constitute an endorsement by the BOE, nor do the results dictate the final design of the digital pound.