A Universal Digital Payments Network for stablecoins and CBDCs has been launched at the World Economic Forum in Davos.
According to Finextra, the network unveiled at Davos aims to provide interoperability between these digital currencies.
The publication noted that UDPN has been in development for the last two years with contributions from GFT, Red Date Technology, TOKO, and DLA Piper. A sandbox was launched in July 2022, where multiple banks tested stablecoin transfer and foreign exchange transactions.
The UDPN reports that several Tier 1 banks will participate in a series of POC use cases throughout the rest of this month to demonstrate how UDPN could be used to solve current and future challenges in integrating digital currency into daily business, banking and payment scenarios.
The first two of these proof-of-concepts will involve two global banks testing UDPN’s digital currency cross-border transfer and swap transaction capabilities, and how the critical “Travel Rule” can be easily implemented on the UDPN between two financial institutions for anonymous stablecoin transfers.
GFT CEO Marika Lulay said, “The purpose of UDPN is to investigate a potential alternative to existing payments systems by enabling interoperability between fiat-backed tokens of stablecoins and regulated protocols. The decentralised approach and geographic breadth of participating firms, combined with the advanced technological solution deployed for these trials, set this network apart.”
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