Bank of England Taps Chainlink for Decentralized Securities Settlement Trials

TLDR

• The Bank of England has confirmed Chainlink’s participation in its Synchronisation Lab to test blockchain-based settlements.
• The program will explore how tokenized assets and central bank funds can settle in sync across the UK financial system.
• Chainlink will develop decentralized workflows linking central bank funds with digital securities in the lab.
• The Synchronisation Lab will run for six months, with 18 firms collaborating to test the interaction of distributed ledger technology and central bank money.
• No live funds will be involved during the trial phase, which will occur in a closed test environment.

On February 10, 2026, the Bank of England confirmed that Chainlink would join its experimental Synchronisation Lab. This initiative aims to explore how blockchain-based assets can settle alongside traditional central bank money in the UK’s financial system. The program is designed to test onchain securities settlements using central bank funds, with operations beginning in spring 2026.

Synchronisation Lab to Explore Blockchain and Central Bank Money

The Synchronisation Lab will bring together 18 firms to explore how central bank funds can interact with distributed ledger technology. The Bank of England’s goal is to test synchronized settlements between tokenized assets and central bank funds. According to the Bank, this will occur in a simulated environment, with no live funds involved during the trial.

The program will run for approximately six months, during which participants will develop working demonstrations. These efforts will focus on ensuring that digital assets and central bank money can move together without increasing settlement risks. However, the Bank emphasized that the initiative remains experimental, and no production systems will be tested during this phase.

Chainlink’s Role in the Synchronisation Lab

Chainlink’s involvement will center on developing decentralized settlement methods for tokenized securities. The firm will design workflows that link central bank funds to digitally issued securities, reducing operational friction. This effort will allow participants to explore new ways to synchronize onchain securities with central bank balances.

“Chainlink is working to create a decentralized settlement model where tokenized assets and cash-like claims are aligned with central bank money,” the company stated. This collaboration will help test how decentralized platforms can coordinate with traditional financial systems, ensuring seamless transactions.

Other Key Participants and Use Cases

Several major financial infrastructure providers will also participate in the Synchronisation Lab. Swift, LSEG, and Partior will test use cases that include foreign-exchange transactions, tokenized bonds, and collateral management. These firms will explore the potential for interoperable platforms and synchronized cash movements in the settlement process.

The Bank of England’s RT2 system will be the core of the test environment, allowing participants to connect through APIs and a user interface. This setup will help test various market segments and asset classes within the current UK financial infrastructure.

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