Polygon Labs, a US-based blockchain payments firm, is participating in Phase 2 of the Bank of England’s Digital Pound Lab, where it will explore capabilities for a digital pound and cross-border stablecoin settlement.

The Digital Pound Lab’s first phase, known as the “Operation Stage,” took place from August to November 2025. Its objective was to assess “whether and how a digital pound could improve existing payment services,” according to the Bank of England. In the ongoing second phase, Polygon’s mandate is to investigate “if a stablecoin and a digital pound can settle the same cross-border payment, in the same flow, without either side waiting on the other.”This work is being conducted as part of a consortium with NOBO Finance and Dun & Bradstreet, one of 12 industry participants selected for Phase 2. The Bank of England has clarified that the Lab operates outside a regulatory sandbox framework and does not involve actual customers or real money transactions.

Polygon, which has processed over $2.6 trillion in stablecoin transactions to date, is responsible for the stablecoin settlement component and the underlying smart contract infrastructure. This is facilitated through its Open Money Stack’s orchestration layer, while the digital pound segment is settled within the Lab’s simulated environment.

Additionally, a related test led by NOBO Finance involves the consortium developing a reusable SME credit profile. This profile integrates transaction data, Dun & Bradstreet’s verified business identity and credit data, and Polygon-based smart contract infrastructure. Polygon views its involvement as an opportunity to “experiment with how our own infrastructure handles digital pound mechanics without the cost, risk, or regulatory runway of a live pilot.”