Uproar! Deutsche Bank & Standard Chartered Test Digital Transaction System That Will Challenge SWIFT!


 "Wahhh a terrible combination, I hope the goal will be successful."

Deutsche Bank and Standard Chartered SC Ventures are testing a system that will allow blockchain, stablecoin and central bank digital currency (CBDC)-based transactions, an approach somewhat similar to the SWIFT messaging layer in traditional banking infrastructure.

The two banks have run a series of test cases including transferring and exchanging USDC stablecoins on the Universal Digital Payment Network (UDPN) which is a blockchain system consisting of validator nodes operated by banks, financial institutions and consultants.

Created by technology consultants GFT Group and Red Date Technology including co-founders of the China Blockchain-Based Service Network (BSN), the system allows transactions to take place across the network from stablecoins on public blockchains to CBDCs.

Then, UDPN will act as an interoperability bridge between various types of blockchain networks while applying the decentralized digital identity (DID) standard.

According to Thorsten Neumann, Chief Technology Officer (CTO) of SC Ventures, UDPN is a network that allows the combination of members, but it is not only a permissionless network but transactions are placed on the underlying infrastructure.

That is, the sending institution takes the value of the token and transfers it into a smart contract managed by UDPN when performing a cross-border currency transfer, then will issue the target currency* from the smart contract.

*Denominations converted to obtain other currencies or countries or regions

Currently, UDPN consists of 25 organizations that are running around 10 proof-of-concept (POC) tests**, comments Steffen Schacher, head of UDPN at GFT Group which is also joined by banks from the United States (US), Australia, Latin America and Europe.

**The process of determining whether a blockchain project has potential and practical applications