The Bank of England confirmed on February 10, 2026, that Chainlink has been selected to participate in its upcoming Synchronization Lab, an experimental initiative aimed at exploring how digital securities could settle alongside sterling balances held at the central bank. The program is scheduled to begin in spring 2026 and will operate for roughly six months within a controlled testing environment that does not involve real funds.
The Synchronization Lab forms part of the Bank’s broader modernization strategy to integrate distributed ledger technology with its Real-Time Gross Settlement system, known as RT2. Through this initiative, the central bank intends to examine how blockchain-based infrastructure can interact with core payment systems while maintaining financial stability and operational resilience.
To simulate real-world conditions, the Lab will replicate essential components of the RT2 framework, including a settlement engine, user interface, and application programming interface layer. These simulated elements will allow participating firms to model transaction flows and test how digital assets and payments could be synchronized effectively within the existing settlement architecture.
A total of 18 organizations have been selected to join the program. The initiative will focus on testing mechanisms that coordinate payments with tokenized assets, ensuring that transfers occur in a synchronized manner.
Testing Settlement Models and Atomic Transactions
Participants in the Lab will develop working prototypes based on two primary models. Under the first structure, synchronization operators will transmit earmarking instructions and execute settlement. In the second model, RTGS account holders will send earmarking instructions, while operators will carry out the settlement process. The Bank has indicated that additional models may be explored depending on feedback and findings during the testing phase.
Chainlink, widely recognized for its decentralized oracle networks that connect blockchain systems to external data sources, will concentrate on building decentralized settlement workflows. The objective is to link central bank money with tokenized securities in a way that reduces operational friction between traditional financial infrastructure and blockchain platforms.
According to information shared by Chainlink, the company is developing a framework designed to align tokenized assets and cash-equivalent claims with central bank money. This structure is intended to facilitate atomic settlement, a process in which both sides of a transaction are completed simultaneously. By ensuring that asset transfer and payment occur at the same time, atomic settlement aims to reduce counterparty and settlement risk.
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
Broad Industry Participation
Chainlink will be joined by several prominent financial infrastructure providers in the trial. Swift is expected to explore applications related to foreign exchange settlement. The London Stock Exchange Group will test the settlement of tokenized bonds, while Partior will examine synchronized cross-border and collateral transactions. UAC Labs AG is also participating and will develop decentralized settlement workflows similar to those being advanced by Chainlink.
The Synchronization Lab has been structured as a non-regulatory and non-commercial testing environment. While it will not involve live transactions or provide regulatory approval, it is designed to offer insights that may guide future development of the RT2 system. The initiative will conclude with an industry showcase, and the Bank of England plans to publish a final report summarizing the lessons learned and technical findings.
The central bank views the Lab as a potential support mechanism for the Digital Securities Sandbox, which allows firms to experiment with settling digital securities in central bank money. By testing synchronization models in a controlled setting, the Bank aims to evaluate how distributed ledger technology could be integrated into mainstream financial infrastructure while preserving efficiency, transparency, and systemic stability.
