Standard Chartered’s venture capital arm, SC Ventures, and German banking giant Deutsche Bank have successfully completed the first exchange of stablecoins using the Universal Digital Payments Network (UDPN), according to a report released on Monday.
UDPN is a blockchain-based messaging platform that supports central bank digital currencies (CBDC) and digital currency systems under government regulation.
SC Ventres’ real-time on-chain swap test between USDC and EURS stablecoins in Deutsche Bank wallets served as the first proof-of-concept (PoC). The private key of SC Ventures was used to sign these transactions, which are accessible on the public EtherScan.
According to Thorsten Neumann, CTO of SC Ventures, “this initiative brings the industry together to identify opportunities to unlock economic value in newly emerging digital currencies.” Fintech companies and financial service providers are in a good position to experiment with stablecoin and CBDC use-cases that profit from the finality of on-chain transactions.
According to the research, Deutsche Bank employed a graphical user interface (UI), while SC Ventures used code that made use of UDPN SDKs and APIs.
The “next logical step” in the evolution of financial transactions, according to Rafael Otero, CTO of Deutsche’s Corporate Bank business,
Deutsche Bank views the pilot project on the UDPN platform as a chance to explore and develop ways for its clients to actively engage in the decentralized global economy of the future and reap the benefits of applications built on the network.
The statement said that it took many weeks for the digital currency transfer POC to demonstrate UDPN’s capacity to address the issue of interoperability in cross-border payments.
The PoC wants to study a variety of different problems, such as supporting gasless transactions on blockchain, and has aided in fostering more collaboration among stakeholders.
For cryptocurrencies, UDPN uses messaging to speed up transactions and do away with reconciliation. Red Date Technology, a co-founder of the Chinese Blockchain-Based Service Network (BSN), is leading the UDPN blockchain program, which involves partnerships with a number of illustrious companies.