- Chainlink joins the Bank of England Synchronization Lab to test atomic settlement with tokenized assets.
- The Bank will run a 6-month RT2 lab to test synchronization models without live money.
- Eighteen firms will simulate full settlement flows to shape future RTGS synchronization design.
Chainlink has been selected by the Bank of England as one of 18 firms joining its new Synchronisation Lab. The initiative will test how tokenized securities settle against central bank funds. The project forms part of the United Kingdom’s RT2 real-time gross settlement upgrade. The lab will run for six months starting in spring 2026.
The controlled environment will not handle live money. However, it will shape future decisions on live RTGS synchronization. The program builds on Project Meridian, which confirmed atomic settlement is technically possible. Now, the bank wants to test practical design and operational models.
Bank of England Expands RT2 Modernization Effort
The Synchronisation Lab supports the broader renewal of the UK’s RT2 system. The bank introduced the lab in October 2025. It aims to assess how external operators interact with RT2. Moreover, it evaluates how synchronization services could support asset markets.
Eighteen organizations will test different synchronization use cases. Participants must demonstrate full end-to-end functionality. They will simulate asset ledger operators, RTGS account holders, and customers. As a result, regulators can assess system reliability and cost efficiency.
The lab may also interest firms in the Digital Securities Sandbox. That framework supports innovation in issuing and settling digital securities. The lab allows sandbox firms to test settlement in sterling central bank money. However, the environment will not process real payments.
How the Synchronisation Lab Will Operate
The lab includes a simulated RT2 settlement engine. It also features an API suite and a dashboard interface. Together, these tools mimic real settlement workflows. Therefore, participants can test integration in near-live conditions.
Operators will build additional layers on top of this platform. They must integrate their systems with the bank’s synchronization capability. Furthermore, they must demonstrate transaction lifecycle management from initiation to completion.
The Bank of England will provide detailed technical specifications before launch. Participants will receive time to develop working prototypes. The bank will also iterate with operators before testing begins. After completion, participants will present findings at an industry showcase.
Two Settlement Models Under Review
The bank will test two synchronization models during the lab. In the first model, operators send earmarking instructions directly to RT2. They then instruct the final settlement of funds.
In the second model, RTGS account holders issue earmark instructions following operator direction. Operators still manage settlement execution. Both models allow operators to initiate, cancel, or complete synchronized transactions.
Additionally, the bank may explore further models based on early feedback. These could test added controls for RTGS account holders. Ultimately, the findings will guide live RT2 design decisions by mid-2026. In November last year, the bank launched consultation on regulations for systemic sterling-backed stablecoins, aiming to modernize payment systems.
Chainlink’s Role in Institutional Integration
Chainlink will experiment with decentralized synchronization between tokenized assets and central bank funds. Its role focuses on enabling secure data connectivity across systems. Meanwhile, UAC Labs AG will support a similar synchronization use case.
Other participants include Swift, LSEG, and Partior. They will test tokenized bonds, foreign exchange, and digital collateral flows.
Separately, Chainlink continues work on settlement standardization projects. It recently supported the Global Alliance to Korean Won Stablecoin with WEMADE. Through these initiatives, it expands its integration with institutional financial infrastructure.
