Bank of England tests SME trade finance using stablecoins and digital pounds in new pilot phase

The Bank of England's Digital Pound Lab has entered Phase 2 with NOBO Finance, Dun & Bradstreet, and Polygon Labs to test SME cross-border trade finance using stablecoin payments and digital pound settlements. The pilot aims to create reusable SME credit profiles and test invoice factoring where exporters receive stablecoin advances while importers settle in digital pounds. This experiment uses no real money or customers and explores interoperability between private stablecoins and central bank digital currency. The initiative supports smoother, faster trade finance for SMEs by reducing settlement times and improving verification processes.