A hallmark of financial evolution was witnessed between Deutsche Bank and Standard Chartered Bank. Indeed, these international financial institutions executed the first Universal Digital Payments Network (UDPN) proof-of-concept (PoC).
This monumental test entailed real-time on-chain transfers and swaps between USDC and EURS stablecoins on the UDPN infrastructure.
The First Stablecoin Transfer and Swap Between Banks
At the heart of this PoC, SC Ventures established a development environment utilizing UDPN SDKs and APIs to forge decentralized identities and linked digital currency wallets. Following a successful onboarding, SC Ventures executed multiple transfers and swaps of synthetic USDC and EURS to Deutsche Bank’s digital currency wallets.
These transactions, signed with SC Ventures’ private key, completed in real-time, with their trails visible on public EtherScan.
Read more: What Is a Stablecoin? A Beginner’s Guide
Conversely, Deutsche Bank reciprocated by initiating multiple transfers and swaps to SC Ventures’ digital currency accounts. It employed a user-friendly graphical interface integrated within its exclusive UDPN environment. The synergy between these financial behemoths relied on UDPN business nodes to connect to the UDPN permissioned DLT consensus network.
Payment messages traversed through two transaction nodes, each supporting USDC and EURS transactions, respectively. Subsequently epitomizing how UDPN can expedite cross-border transactions from days to mere minutes. This also portrays a solution to the interoperability challenges among different technologies within the cryptocurrency industry.
This endeavor is the pioneer in a series of 12 PoCs aiming to unravel the interoperability enigma in cross-border payments. The learnings encompassing Central Bank Digital Currency (CBDC), digital assets, key custody, and compliance, among other facets, were extensively deliberated and documented throughout the PoC phase.
“We are pleased to partake in the first industry pilot on the UDPN platform. This initiative brings the industry together to identify opportunities to unlock economic value in newly emerging digital currencies. Tokenized forms of currency will inevitably become a part of the new financial landscape,” Thorsten Neumann, CTO of SC Ventures, said.
According to Rafael Otero, CTO of Deutsche’s Corporate Bank, this successful PoC shines a light on the potential of stablecoins and CBDCs. It beckons a new era of financial transactions, moving a step closer to a digital and regulated future of money
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