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Universal Digital Payments Network Launches at Davos

A Universal Digital Payment Network (UDPN) for stablecoins and Central Bank Digital Currencies (CBDC) was launched at the World Economic Forum (WEF) in Davos.

Universal Digital Payments Network Launches at Davos

Source: Pixabay.com

The network was created to ensure the interaction between digital currencies.

UDPN has been developed over the past two years. GFT, Red Date Technology, TOKO, and DLA Piper participated in this process. In July last year, a sandbox was launched, where several banks tested stable coin transfers and currency transactions.

The network was launched in Davos with a panel discussion on the rapidly evolving digital currency, interoperability, and infrastructure. The event was attended by representatives of Deutsche Bank, HSBC, Standard Chartered, Bank of East Asia, and Akbank.

Several first-tier banks will participate in a series of examples of using the concept until the end of January. Testing is necessary to demonstrate how UDPN capabilities allow solving problems related to the integration of digital currency into everyday business, banking, and payment scenarios.

The first two verification concepts will involve two global banks testing the possibilities of cross-border transfers of UDPN digital currency and swap transactions.

Marika Lulay, CEO of GFT, stated that the purpose of UDPN is to explore in practice the prospects of using a potential alternative to standard payment systems. She also noted that special attention will be paid to ensuring compatibility between stablecoins, regulated protocols, and fiat money.

Marika Lulay says that the application of the principle of decentralization, advanced technological solutions, and the wide geography of project participants make the new network stand out among its analogs that are represented in the financial services market.

As we have reported earlier, US Banks to Test Digital Assets on Regulated Liability Network.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.