The Bank of England has teamed up with Chainlink to test how blockchain technology can help settle tokenized assets alongside central bank money.

Key Takeaways

• Chainlink was selected as one of 18 participants in the Bank of England’s Synchronisation Lab, an experimental six-month program launching in spring 2026.
• The Lab will explore atomic settlement between tokenized assets and central bank funds using a simulated version of the BoE’s upgraded RT2 system.
• No real money will be used, but findings will help shape future designs for live blockchain-integrated settlement systems.
• Major players like Swift, LSEG, and Partior are also joining, testing use cases in tokenized bonds, FX trades, and collateral management.

What Happened?

The Bank of England confirmed on February 10, 2026, that Chainlink will participate in its upcoming Synchronisation Lab. This experimental platform will allow companies to test how digital securities can settle in coordination with sterling balances held at the central bank. The Lab is designed to run from spring 2026 for approximately six months in a controlled environment with no real funds involved.

JUST ANNOUNCED: Chainlink has been selected to participate in the Bank of England’s Synchronisation Lab.

Chainlink is supporting synchronized settlement between central bank money and onchain securities.

This is how the UK financial system moves onchain. pic.twitter.com/b3ho0gN1DY

— Chainlink (@chainlink) February 10, 2026

BoE’s Synchronisation Lab: A Testbed for the Future

The Synchronisation Lab is part of the Bank of England’s broader modernization efforts to integrate distributed ledger technologies (DLT) with its Real-Time Gross Settlement system (RT2). The Lab will simulate key components of the RT2 system, including a settlement engine, user interface, and API layer, to allow firms to model real-world transactions.

• 18 organizations have been selected to participate.
• The program will test synchronization of payments and digital assets.

Participants will develop working prototypes based on two core models:

• Synchronization operators send earmarking instructions and issue settlement.
• RTGS account holders send earmarking instructions with operators issuing settlement.
• The Bank may test additional models based on feedback from this phase.

Chainlink’s Role: Bridging Smart Contracts and Central Bank Funds

Chainlink, known for its decentralized oracle networks, will work on creating decentralized settlement workflows that connect central bank money to tokenized securities. The goal is to reduce operational friction and coordinate real-world financial systems with blockchain-based platforms.

According to Chainlink, the company is developing a model where “tokenized assets and cash-like claims are aligned with central bank money.” This design aims to enable atomic settlement, where both sides of a transaction occur simultaneously, reducing settlement risk.

Industry Heavyweights Join the Trial

Chainlink won’t be alone. A range of major infrastructure players have also signed on, including:

• Swift: exploring foreign exchange settlement applications.
• London Stock Exchange Group (LSEG): testing tokenized bond settlements.
• Partior: looking into synchronized cross-border and collateral transactions.
• UAC Labs AG: developing similar decentralized workflows alongside Chainlink.

The lab provides a non-regulatory, non-commercial environment where participants can experiment with how their systems would interact with the RT2 platform.

From Lab to Live?

While the Synchronisation Lab won’t use live money or confer regulatory approval, it is expected to inform future design and development decisions for the Bank of England’s RT2 system. The Lab will culminate in an industry showcase, and a final report will be published summarizing lessons learned.

The BoE sees potential in using this initiative to support the Digital Securities Sandbox (DSS), allowing firms to test digital securities settlement in central bank money.

CoinLaw’s Takeaway

In my experience watching how central banks evolve, this move by the Bank of England is a bold but necessary step. Choosing Chainlink shows that serious players are bridging old and new finance. I find it refreshing that the BoE is not just talking innovation but is actually building hands-on testing grounds. Real experimentation with decentralized finance by a top-tier central bank could be a turning point in how traditional finance sees blockchain tech. It’s not hype anymore. It’s infrastructure.