Key Highlights
- Chainlink has been selected by the BoE to bridge central bank money with blockchain-based assets.
- The move comes as part of the BoE’s Synchronisation Lab, an experimental program designed to test new settlement mechanisms.
- It is a controlled experiment: no real funds will be handled, and participation does not imply regulatory approval.
Leading decentralized oracle network Chainlink has been chosen by the Bank of England (BoE) to help explore how central bank money can interact with blockchain-based assets.
The move, announced on Tuesday, comes as part of the BoE’s Synchronisation Lab, an experimental program designed to test new settlement mechanisms between traditional financial systems and distributed ledger technology.
Chainlink’s role in Synchronisation Lab
According to the BoE, Chainlink will be focusing on creating decentralized methods for performing settlements that connect sterling held at the central bank with digitally issued securities. By providing real-world data to smart contracts, the oracle network aims to show how central bank funds could coordinate with tokenized assets.
UAC Labs AG has been given a similar mandate, while other participants, including Swift, the London Stock Exchange Group (LSEG), and Partior, will explore applications such as tokenized bonds, collateral management, and foreign-exchange transactions.
Working with real-time settlement
The lab is part of the BoE’s larger initiative to modernize its Real-Time Gross Settlement system (RT2). Participants will access a simulated environment using dedicated APIs and a user interface, allowing them to test how their platforms would interact with both payment systems and asset registries.
The central bank highlights that this is a controlled experiment: no real funds will be handled, and participation does not imply regulatory approval. Instead, the findings gathered will help shape future capabilities for synchronizing traditional and digital financial infrastructures.
Chainlink powers real-world assets platform
In a related development, Asseto Finance, a platform for tokenizing real-world assets (RWAs), announced today that it has integrated Chainlink CCIP and Price Feeds to improve its RWA-as-a-service offering. CCIP (Cross-Chain Interoperability Protocol) would now handle cross-chain transactions, while Price Feeds provide reliable on-chain pricing data.
The integration shows how Chainlink’s tools are being used more to connect traditional finance and blockchain ecosystems, both in experimental central bank projects and commercial applications.
Why it matters
The project coincides with the UK regulator’s consultation on systemic stablecoins, digital tokens backed by central bank deposits or government securities. The BoE is setting the stage for a future where digital assets and traditional currencies operate side by side by exploring how blockchain and central bank money can work together.
Also Read: Bank of England Proposes £20,000 Limit on Stablecoin Holdings
