Standard Chartered and Deutsche Bank Complete Stablecoin Swaps on UDPN
SC Ventures, the venture capital arm of Standard Chartered Bank, and Deutsche Bank have successfully conducted the first stablecoin swaps on the Universal Digital Payments Network (UDPN), according to a report. UDPN is a blockchain-based messaging system that supports government-regulated digital currency systems and central bank digital currencies (CBDC).
The proof-of-concept involved SC Ventures conducting real-time on-chain swaps between USDC and EURS stablecoins to Deutsche Bank wallets. These transactions were publicly visible on EtherScan and signed with SC Ventures’ private key.
Thorsten Neumann, CTO of SC Ventures, stated that this initiative brings the industry together to identify opportunities in emerging digital currencies. He emphasized the potential for financial service providers and fintechs to experiment with stablecoins and CBDC use-cases that benefit from the finality of on-chain transactions.
Deutsche Bank’s CTO of Corporate Bank division, Rafael Otero, sees this pilot as the next logical step in the development of financial transactions. He believes it presents an opportunity for clients to actively participate in the decentralized global economy.
“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 showcased UDPN’s capability to solve interoperability challenges in cross-border payments. It took several weeks to complete and aimed to foster greater collaboration among stakeholders. Future explorations include facilitating gasless transactions on the blockchain.
UDPN, spearheaded by Red Date Technology, aims to make cryptocurrency transactions faster by utilizing messaging and eliminating reconciliations. It is part of the Chinese Blockchain-Based Service Network (BSN) and involves various prominent organization alliances.
Hot Take: Standard Chartered and Deutsche Bank Lead the Way in Stablecoin Swaps on UDPN
Standard Chartered Bank’s VC arm, SC Ventures, and Deutsche Bank have successfully executed stablecoin swaps on the Universal Digital Payments Network (UDPN). This pilot initiative highlights the potential for financial service providers and fintechs to experiment with stablecoins and CBDC use-cases that benefit from the finality of on-chain transactions. It also demonstrates UDPN’s capability to address interoperability challenges in cross-border payments. As the industry moves towards a decentralized future global economy, this development paves the way for active participation by clients and the exploration of innovative applications built on top of the network.
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