Blockchain company Red Date Technology has just announced the launch of a digital payments network with the goal of creating a platform that unites the world of stablecoins and CBDCs, digital currencies issued by central banks. The launch took place during the World Economic Forum, Davos in Switzerland, in which some of the world's largest banks participated.
UDPN is a Distributor Ledger Technology (DLT) platform that seeks to fulfill a similar role to that of the SWIFT network for banks, but for stablecoins and CBDCs. According to their white paper, there are already several top-tier banks that are involved in proof-of-concept (PoC) tests to test the network in cross-border transfers and exchanges.
Traditional banking reaches the crypto world
Although the banks involved in the tests have not been made public, it is known that Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asia, and Akbank were present at the launch of the UDPN in Davos. In addition to Red Date Technology, they have also collaborated with the GFT Technologies technology engineering company and the TOKO digital asset creation engine from the legal firm DLA Piper in the development of the UDPN.
The UDPN will only accept CBDC and central bank-backed stablecoin systems, and will not accept “unregulated” public cryptocurrencies like Bitcoin. In the future, a further eight tests are planned for the UDPN, including the issuance and circulation of a CBDC and a stablecoin issued by the bank, as well as the use of the UDPN as a payment gateway for e-commerce.
In addition, the UPDN offers accelerated access for commercial banks to actively participate in the decentralized economy, as it can provide liquidity pools and interact with local central banks to offer liquidity for cross-border foreign exchange transactions.
Short term benefits
UDPN has been under development by Red Date Technology for almost two years, and before launching this platform, the company was recognized for its outstanding work on China's national blockchain project, the Blockchain-based Service Network (BSN).
The UDPN offers a number of key benefits for the financial industry and global commerce, including creating a common standard for communication between different digital currency systems, facilitating interoperability between CBDC and stablecoin ecosystems.
Furthermore, it allows business enterprises around the world to transact and make payments in different currencies, allowing them to easily integrate with various digital currency payment systems. The connection to the UDPN is achieved through locally installed business nodes that grant access to the network and thus connect users with the associated stablecoin and CBDC currency systems.
Another important benefit is that the UDPN provides essential digital infrastructure services to any information system that can offer applications and services that involve digital currency payments, in a relatively cheap and convenient way. The network will be managed by an alliance of financial institutions and technology companies from different countries and sectors, each with equal shared ownership of the network to promote a strong and inclusive governance structure.
The launch of the UDPN by Red Date Technology marks an important step in the creation of a digital payments network that unites the world of stablecoins and CBDCs. With the support of some of the world's largest banks and a distributed ledger technology platform, UDPN has the potential to become a benchmark payment network for the future. However, there are still several challenges to overcome, such as regulation and the development of a strong ecosystem.