Deutsche Bank, SC Ventures Trial SWIFT Messaging Layer For Stablecoins And CBDCs

Deutsche Bank DB and Standard Chartered’s SCBFF SC Ventures have undertaken a testing system enabling blockchain-based transactions, stablecoins, and CBDCs to interact with one another just like the SWIFT messaging layer in legacy banking infrastructure.

Find out details about blockchain-based transactions and the companies adopting it at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!  

The test system, according to Coindesk, was created by tech consultancy GFT Group and Red Date Technology, co-founder of the Chinese Blockchain-Based Service Network.

Test cases include transferring and swapping USDC stablecoins on the Universal Digital Payments Network (UDPN), financial institutions, and consultancies. UDPN is a permissioned blockchain system consisting of validator nodes run by an alliance of banks.

Read Also: Why German Multinational Company Deutsche Bank's Shares Are Surging Today

UDPN consists of almost 25 organizations including banks from the U.S., Australia, Latin America, and Europe — running around 10 proof-of-concept tests in parallel, UDPN Lead at GFT Group Steffen Schacher commented.

UDPN acts as an interoperability bridge between all blockchain networks. It also applies battle-tested decentralized digital identity standards (DIDs) to participants, creating a bank-friendly and regulated environment.

For a cross-border currency transfer, the sending institution takes the tokenized value and transfers it into a UDPN-managed smart contract, leading to the release of the intended target currency from that smart contract, SC Ventures CTO Thorsten Neumann explained.

Benzinga’s Future of Digital Assets conference is scheduled in New York on Nov. 14. Attend and learn about stablecoins and CBDCs. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

Read Next: New Digital Payment Network Promises To Make Cross-Border Transactions Faster, Cheaper

Image: Shutterstock