Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the recent successful transfer of stable coin swaps between Standard Chartered & Deutsche Bank on the Universal Digital Payments Network.
Universal Digital Payments Network
The VC arm of Standard Chartered Bank, SC Ventures, and German banking giant Deutsche Bank have executed the very first stable coin swaps on the Universal Digital Payments Network (UDPN). This news was broken in a report published on Monday the 23rd of October 2023. UDPN is a blockchain-based messaging system which supports government-regulated digital currency systems and central bank digital currencies (CBDC).
The first proof-of-concept (PoC) involved SC Ventres’ real-time on-chain swap test between USDC and EURS stable coins to Deutsche Bank wallets, with these transactions available on EtherScan and signed with SC Ventures’ private key. Thorsten Neumann, CTO of SC Ventures, noted:
“This initiative brings the industry together to identify opportunities to unlock economic value in newly emerging digital currencies. Financial service providers and fintechs are well-positioned to experiment with stable coins and CBDC use-cases that benefit from the finality of on-chain transactions.”
The report noted that SC Ventures used code leveraging UDPN SDKs and APIs, while Deutsche Bank made use of graphical user interface (UI). The CTO of Deutsche’s Corporate Bank division, Rafael Otero, noted how it is the “next logical step” in the development of financial transactions. He added:
“For Deutsche Bank, the industry pilot on the UDPN platform is an opportunity to investigate and research how we can enable our clients to actively participate in the decentralized future global economy and benefit from applications that are built on top of the network.”
The PoC of the digital currency transfer took multiple weeks to showcase UDPN’s capability, which in turn should assist in solving the challenge of interoperability in cross-border payments. It has also helped to endorse collaboration among the multiple stakeholders in the financial transactions industry, while also aiming to explore a variety of other topics like facilitating gasless transactions on blockchain.
UDPN makes use of messaging for cryptocurrencies, which allows transaction to be made quicker while also removing reconciliations. The initiative is spearheaded by Red Date Technologies, which is a co-founder of the Chinese Blockchain-Based Service Network (BSN). This involves several prominent organization alliances.
Have a great day,
Peace. CryptoGod-1.
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