Davos-launched blockchain project aims to be the ‘SWIFT’ of stablecoins and CBDCs

Davos-launched blockchain project aims to be the ‘SWIFT’ of stablecoins and CBDCs

A Hong Kong-based blockchain firm has launched a digital funds system geared toward bridging the hole between stablecoins and central financial institution digital currencies (CBDCs).

Red Date Technology, the blockchain infrastructure agency that can also be main one of China’s blockchain efforts, launched the Universal Digital Payment Network (UDPN) on Jan. 19 throughout the World Economic Forum (WEF) 2023 assembly in Davos, Switzerland.

Tech engineering firm GFT Technologies and the digital asset creation engine TOKO from legislation agency DLA Piper are additionally contributors to UDPN growth.

According to its white paper, the UDPN is a distributed ledger know-how (DLT) platform that might serve the same goal to what the SWIFT community does for banks, aside from stablecoins and CBDCs.

“Just as the SWIFT community created the authentic frequent commonplace for messaging between monetary establishments throughout totally different settlement techniques, the UDPN will serve the identical goal for the rising technology of CBDCs and stablecoins.”

According to a Jan. 19 press launch, a “quantity of world tier 1 banks” are already concerned in use case proof of ideas (POCs) to check the community in cross-border transfers and swaps.

The launch didn’t disclose which banks had been collaborating in the POCs, however Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asiaand Akbank had been represented on a panel at the UDPN launch in Davos.

A high-level overview of the UDPN structure depicting CBDC techniques connecting to off-chain “transaction nodes” which in flip join to the on-chain “validator nodes.” Source: UDPN white paper.

The stablecoins to be utilized in the POC had been additionally undisclosed. The networks whitepaper does state, nevertheless, that it solely helps “CBDCs and regulated fiat-backed stablecoin forex techniques as cost strategies,” including:

“No unregulated public-chain crypto-currencies, akin to Bitcoin, will be accepted.”

Eight different proof-of-concept assessments are scheduled for the community, together with issuing and circulating a CBDC and bank-issued stablecoin and utilizing UDPN as a cost gateway for e-commerce.

Related: Going cashless: Norway’s digital currency project raises privacy questions

The UDPN has been in growth by Red Date for almost two years,

Before launching this digital funds system, the firm was identified for its work on Blockchain-based Service Network (BSN), China’s nationwide blockchain project.

In a now-deleted roadmap posted on Jan. 15, 2021, the BSN mentioned it planned to build a global CBDC system that “will utterly change the present cost and circulation methodology, enabling a standardized digital forex switch methodology and cost process for any data system.”

The newest white paper makes no point out of Red Date’s involvement in steering China’s blockchain project, nor of the nation’s personal CBDC efforts with its digital yuan.

A spokesperson for the project instructed Cointelegraph there’s “no connection in any way between BSN and UDPN” as the latter is “managed and ruled in a decentralized method.”

In June, Red Date’s CEO, Yifan He, referred to as cryptocurrencies the “biggest Ponzi scheme in human history.”

Update (Jan. 23, 6:40 AM UTC): Added remark from UDPN spokesperson.