SC Ventures, the venture capital arm of Standard Chartered Bank, and Deutsche Bank, the renowned German banking giant, have successfully executed the first-ever stablecoin swap.
This momentous achievement transpired on the Universal Digital Payments Network (UDPN) and was reported in a publication that was released on Monday.
Additionally, The UDPN is a blockchain-infused communication infrastructure. It provides crucial support to government-sanctioned digital currencies as well as central bank digital currencies (CBDC).
The initial proof-of-concept (PoC) involved a real-time on-chain exchange trial conducted by SC Ventures. It featured the swapping of USDC and EURS stablecoins using Deutsche Bank’s digital wallets.
These transactions were transparently recorded on the EtherScan platform and were secured through the utilization of SC Ventures’ unique cryptographic key.
Fostering Unity and Innovation in Digital Currency: A Path Forward
Thorsten Neumann, the Chief Technology Officer (CTO) of SC Ventures, articulated that this initiative is geared towards uniting the industry. Additionally, it is aimed at discovering emerging economic opportunities within the realm of digital currencies.
Furthermore, Financial service providers and fintech enterprises are strategically positioned to embark on exploratory ventures concerning stablecoins and CBDC use-cases. Moreover, they can capitalize on the immutable nature of on-chain transactions.
As per the dossier, SC Ventures utilized codes, harnessing the resources provided by UDPN Software Development Kits (SDKs) and Application Programming Interfaces (APIs). In contrast, Deutsche Bank opted for a user-friendly graphical interface (UI).
Rafael Otero, Deutsche Bank’s Chief Technology Officer in the Corporate Banking division, characterizes this achievement. He views it as the “next natural progression” in the evolution of financial transactions.
“For Deutsche Bank, the industry pilot on the UDPN platform is an opportunity to investigate and research how we can enable our clients to actively participate in the decentralized future global economy and benefit from applications that are built on top of the network.”
UDPN’s Innovation in Stablecoin Swap and Cross-Border Interoperability
Notably, The trial for digital currency transfers extended over several weeks. During this period, it served as a demonstration of UDPN’s prowess in surmounting the challenge of cross-border payment interoperability. Subsequently, this achievement was elaborated upon in the official release.
Additionally, The proof-of-concept (PoC) has fostered a stronger sense of collaboration among the stakeholders. They are now committed to exploring various other topics. One of these is how to facilitate transactions on the blockchain without incurring gas fees.
Furthermore ,UDPN relies on cryptographic messaging for digital assets. This leads to accelerated transactions and the removal of reconciliation procedures.
Led by Red Date Technology, a foundational entity within the Chinese Blockchain-Based Service Network (BSN), the UDPN blockchain initiative takes great pride in its association with various distinguished organizational alliances.