Deutsche Bank and SC Ventures completed the transfer and exchange of stablecoins on the Universal Digital Payments (UDPN) network — an analogue of SWIFT for connecting CBDC and stablecoins. According to Financial Express.
SC Ventures, as part of the proof-of-concept, created a development environment and used UDP SDK and API to create decentralized identity data and wallets with digital currency.
After completing the registration process, Standard Chartered’s venture arm initiated numerous transfers and swaps of USDC and EURS to Deutsche Bank’s digital currency wallets. The transactions were signed and accessible to all via the blockchain explorer Etherscan.
Meanwhile, the partner carried out numerous transfers and swaps to SC Ventures’ accounts through the graphical UI integrated into their dedicated UDPN environment.
Financial institutions relied on UDPN business nodes to connect to the permissioned UDPN network. One supported USDC transfers, the other EURS.
The first in the series of 12 planned experiments was conducted over several weeks to demonstrate how UDPN addresses functional compatibility issues in cross-border payments.
The others will focus on other use cases. The developer’s partners, Red Date Technology, will include several unnamed global banks, fintech firms, and payment-service providers.
In June, BIS Innovation Hub, in collaboration with the central banks of France, Switzerland and Singapore, conducted tests of a Curve v2-based hybrid function automated market-maker for operations in pools with wholesale CBDCs.
Earlier, BIS completed Project Icebreaker, aimed at creating a cross-border retail payments system for national digital currencies.
In September, SWIFT connected central banks of three countries to the second phase of pilot testing of interoperability between traditional systems and CBDCs.