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

<p>&nbsp;"Wahhh a terrible combination, I hope the goal will be successful."</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>Then, UDPN will act as an interoperability bridge between various types of blockchain networks while applying the decentralized digital identity (DID) standard.</p><p><br /></p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>*Denominations converted to obtain other currencies or countries or regions</p><p><br /></p><p>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.</p><p><br /></p><p>**The process of determining whether a blockchain project has potential and practical applications</p>