Bank of England tests stablecoin, digital pound-linked payments with Polygon

The Bank of England is testing whether private stablecoins and a central bank-issued digital pound can be used together in a single payment process, CoinDesk reported. The central bank has expanded its digital pound research into a second phase and is examining whether stablecoin infrastructure and central bank money can operate simultaneously in trade finance settlement. Polygon Labs, the developer behind Polygon (POL), is participating in the second-phase research, according to the report. The Bank of England has studied central bank digital currencies and distributed ledger technology since 2024, and the latest test is part of broader efforts by central banks to explore how private stablecoins and state-issued digital currencies could be applied together within existing financial systems.