To bridge the gap between digital currencies of central banks (CBDCs) and stablecoins, a blockchain startup with headquarters in Hong Kong recently introduced a digital payment systems platform known as UDPN.
The Universal Digital Payment Network (UDPN) was introduced on January 19 at the World Economic Forum (WEF) 2023 conference in Davos, Switzerland. Red Date Technology, a company focusing on blockchain infrastructure introduced it. The company is additionally in charge of a blockchain initiative in China.
China’s Take On SWIFT In Cryptocurrency – The UDPN
UDPN development is also supported by the digital asset generation engine TOKO. TOKO is from DLA Piper, the law firm. Furthermore, GFT technologies, the business focusing on tech engineering is also a supporter of the UDPN development.
The UDPN is a distributed ledger technology (DLT) platform, according to the white paper. It would function similarly to the things that the SWIFT network works out for banks, with the exception of CBDCs and stablecoins.
Multiple tier 1 banks from around the globe are reportedly already engaged in use case proof of concepts (POCs) to evaluate the system in cross-border swaps and transfers, as per a press release from January 19.
Although the statement did not specify which institutions were participating in the POCs, a panel at the Davos UDPN launch included representatives from The Bank of East Asia, HSBC, Deutsche Bank, Standard Chartered, and Akbank.
Also kept secret were the stablecoins that will be in circulation in the POC. However, according to the whitepaper of the network, the only payment options it accepts are “CBDCs and regulated fiat-backed stablecoin currency systems.”
Red Date has been working on the UDPN for almost two years. The business was well-known for its work on China’s national blockchain initiative, Blockchain-based Service Network (BSN), before introducing this digital payments system. Red Date’s role in leading China’s blockchain initiative and the nation’s own CBDC efforts with its digital yuan is not mentioned in the most recent white paper.
