Bank of England/ BIS Innovation Hub DLT Innovation Challenge

DLT Innovation Challenge is an initiative launched by the Bank of England in collaboration with the Bank for International Settlements Innovation Hub (BISIH) London Centre.

This challenge invites firms to explore the feasibility of transacting and settling central bank money on DLT, specifically platforms not operated by the Bank and where trust is not inherent. It is a unique opportunity for firms to showcase their technological capabilities, demonstrate their solution capabilities – such as how a stablecoin issuance or tokenisation of assets can directly interact with central bank money – and contribute to shaping the future of wholesale settlement infrastructure.

As DLT continues to evolve, it is essential that central bank money remains compatible with emerging financial technologies. The challenge aims to deepen understanding of how DLT can support key features such as:

• Settlement finality and security: Ensuring secure, irreversible settlement of central bank money through tamper-proof transactions, controlled issuance, and protection against theft or unauthorised access.

• Scalability: Demonstrating how DLT handles high transaction volumes with low latency, supports efficient consensus, and scales both technically and economically with payments and liquidity efficiency.

• Network and asset control: Exploring how DLT governs digital assets, enforces programmable access and compliance, and balances decentralisation with regulatory requirements and reconciliation.

• Interoperability: How DLT facilitates seamless communication between diverse financial systems, protocol compatibility and cross-network functionality.

What to expect
The challenge will run for four weeks beginning in September 2025, culminating in a showcase event in London on 21 October. Selected participants will engage in weekly technical deep dives, before presenting their solutions to experts from the Bank, BISIH, central banks, and the wider community. There is further information in the Terms of Participation. Applications via the expression of interest will close on 23 July 2025. Participants will be notified by late August 2025.

This is a valuable opportunity for firms to:

• Present their innovative solutions to a wider audience

• Engage directly with central banks and industry leaders

• Contribute to the policy and technical discourse on the future of money and payments

Find out more here.