SC Ventures, the venture capital branch of Standard Chartered Bank, in collaboration with the renowned German bank, Deutsche Bank, have successfully completed the first stablecoin swaps on the Universal Digital Payments Network (UDPN), as disclosed in a recent Monday report.
UDPN operates as a blockchain-integrated messaging system that facilitates regulated digital currency systems, including central bank digital currencies (CBDC).
The inaugural proof-of-concept (PoC) showcased SC Ventures’ real-time blockchain-based swap between USDC and EURS stablecoins, which were then sent to Deutsche Bank’s digital wallets. These on-chain transactions can be publicly viewed on EtherScan and bear the authentication of SC Ventures’ private key.
Thorsten Neumann, SC Ventures’ Chief Technology Officer, commented on the development, “This endeavor unites the financial sector, pinpointing prospects to derive value from the evolving realm of digital currencies. Both traditional financial institutions and fintech startups are poised to explore stablecoins and CBDC scenarios that leverage the definitiveness of on-chain transactions.”
The report indicates that SC Ventures utilized code that incorporated UDPN SDKs and APIs for the transaction, whereas Deutsche Bank employed a graphical user interface (UI).
Rafael Otero, the Chief Technology Officer for Deutsche’s Corporate Bank division, described the endeavor as the “next logical step” in the evolution of financial transactions. He further added, “For Deutsche Bank, this pilot exercise on the UDPN platform serves as a platform to explore and understand how we can empower our clientele to actively engage in the decentralized, forthcoming global economy, while also capitalizing on applications developed on this network.”
The proof-of-concept (PoC) for digital currency transfer was undertaken over several weeks, demonstrating UDPN’s potential to address interoperability issues inherent in cross-border payments, as highlighted in the announcement.
This PoC has not only nurtured enhanced collaboration among involved parties but also aspires to delve into numerous other areas, including enabling blockchain transactions that don’t require gas fees.
Employing messaging for cryptocurrencies, UDPN enhances transaction speeds and eliminates the need for reconciliations. The driving force behind the UDPN blockchain project is Red Date Technology, a co-founding entity of the Blockchain-Based Service Network (BSN) in China, which is a collaboration of several significant organizational partnerships.