Standard Chartered, Deutsche Complete First Stablecoin Swaps on UDPN Blockchain
SC Ventures, Standard Chartered Bank’s VC arm, and German banking giant Deutsche Bank have executed the first stablecoin swaps on the Universal Digital Payments Network (UDPN), per a report published Monday.
UDPN is a blockchain-based messaging system supporting 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 stablecoins to Deutsche Bank wallets. These transactions are visible on public EtherScan and signed with SC Ventures’ private key.
“This initiative brings the industry together to identify opportunities to unlock economic value in newly emerging digital currencies,” said Thorsten Neumann, CTO of SC Ventures. “Financial service providers and fintechs are well-positioned to experiment with stablecoins and CBDC use-cases that benefit from the finality of on-chain transactions.”
According to the report, SC Ventures used code leveraging UDPN SDKs and APIs, while Deutsche Bank used a graphical user interface (UI).
Rafael Otero, CTO of Deutsche’s Corporate Bank division calls it the “next logical step” in the development of financial transactions.
“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 digital currency transfer PoC took several weeks to showcase UDPN’s capability to solve the challenge of interoperability in cross-border payments, the release noted.
The PoC has helped foster greater collaboration among stakeholders and aims to explore a variety of other topics like facilitating gasless transactions on blockchain.
UDPN uses messaging for cryptocurrencies, making transactions faster and removing reconciliations. The UDPN blockchain initiative is spearheaded by Red Date Technology, a co-founder of the Chinese Blockchain-Based Service Network (BSN), involving several prominent organization alliances.