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<a href="https://www.bankofengland.co.uk/the-digital-pound/lab/digital-pound-lab-phase-2-update" target="_blank" rel="noopener">The Bank of England</a> has confirmed Phase 2 of its Digital Pound Lab. Participants: Ethereum scaling network Polygon, business data firm Dun &amp; Bradstreet, and fintech NOBO Finance. The Bank published its official Phase 2 update on June 25, 2026.
The experiment has a clear goal. It tests whether <a href="https://www.thecoinzone.com/stablecoins/schelling-point/" data-wpil-monitor-id="3051">stablecoins</a> and a potential digital pound can work together in cross-border trade finance workflows.
No real customer money is at stake. The Lab runs as a controlled sandbox. According to BoE materials, Phase 2 runs two parallel tracks. One: use cases developed directly by the Bank. Two: use cases proposed by participating firms. Both tracks test interoperability between <a href="https://www.thecoinzone.com/news/trump-fed-nominee-warsh-crypto-ties/" data-wpil-monitor-id="3049">central bank digital currency</a> and privately issued stablecoins. Simulated payment environments only.
The target? Small and medium-sized enterprises. <a href="https://www.thecoinzone.com/defi/what-is-overcollateralization/" data-wpil-monitor-id="3056">Traditional trade finance</a> routinely squeezes them out. As Global Trade Review reported on August 12, 2026, the consortium is exploring electronic bills of lading alongside <a href="https://www.thecoinzone.com/news/lagarde-warns-digital-dollarisation-dollar-stablecoins-dominate/" data-wpil-monitor-id="3057">stablecoin and digital</a> pound settlement mechanics. That combination could cut friction in cross-border invoicing. Correspondent banking rails don’t serve these businesses well. This approach might.
Each participant brings something specific. NOBO Finance focuses on trade finance access for smaller businesses. It completed Phase 1 of the Lab alongside Applied Blockchain, according to Innovate Finance. Dun &amp; Bradstreet contributes business identity and credit data infrastructure. That maps directly onto KYC and counterparty verification demands in cross-border transactions. Polygon provides the settlement layer. A public Ethereum-adjacent network. Inside a G7 <a href="https://www.thecoinzone.com/news/global-central-banks-support-powell-independence/" data-wpil-monitor-id="3052">central bank</a> experiment. That’s notable.
The BoE isn’t calling this a launch. Its materials describe a demonstrative environment. Not a live deployment. The broader Digital Pound design phase is still an open policy question. A progress update from earlier in 2026 was explicit: the Lab’s findings inform whether a full build decision is warranted. They don’t pre-empt one.
Still. The participant list matters beyond the sandbox. A <a href="https://www.thecoinzone.com/news/ecb-tokenization-central-bank-money-rules/" data-wpil-monitor-id="3053">central bank</a> naming a specific public blockchain in official documentation sends a different signal than generic distributed ledger commitments. For the <a href="https://www.thecoinzone.com/blockchain/ethereum/" data-wpil-monitor-id="3050">Ethereum ecosystem</a>, it’s concrete. For institutional investors evaluating Layer 2 infrastructure, Polygon’s formal inclusion is worth tracking.
The UK’s <a href="https://www.thecoinzone.com/news/yield-bearing-stablecoins-regulatory-debate/" data-wpil-monitor-id="3058">regulatory framework for stablecoins</a> is also moving. The Financial Conduct Authority is building oversight rules for privately issued <a href="https://www.thecoinzone.com/news/bank-of-italy-digital-bank-money-push/" data-wpil-monitor-id="3055">digital money</a>. The Digital Pound Lab is now <a href="https://www.thecoinzone.com/news/south-korea-bank-tests-stablecoin-system/" data-wpil-monitor-id="3054">testing stablecoin</a> and CBDC interoperability at the same time. The policy and technical tracks are converging. No retail digital pound launch timeline exists yet. But the direction is clear.

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Bank of England confirms Phase 2 of its Digital Pound Lab with Polygon, Dun & Bradstreet testing stablecoin and CBDC interoperability for trade finance.