Yet another blockchain-based payment system

Red Date Technology is a blockchain infrastructure company. The company is currently in the process of carrying out a blockchain project for China. At the same time, it launched an innovative system during the 2023 edition of the World Economic Forum (WEF) in Davos, Switzerland. Check out this blockchain project focused on stablecoins and CBDCs.

A SWIFT-like system for CBDCs

Currently, there is a divide between stablecoins and central bank digital currencies. In order to fill the latter, a company specializing in blockchain and based in Hong Kong has launched a system. Reddit reported this information through a publication on January 23, 2023. It appears that the company Red Date Technology launched a digital payment system on January 19 in Davos.

The new solution aims to build the SWIFT of CBDCs and stablecoins. It is specifically a Universal Digital Payment Network (UDPN). The system was designed in collaboration with the technological engineering company GFT Technologies.

A new payment system

There was also the contribution of the TOKO platform, which specializes in the creation of digital assets. The platform in question belongs to the law firm DLA Piper.

How does the new UDPN look like?

The UDPN white paper states that it is a Distributed Ledger Technology (DLT) platform. The objective of the new system is similar to that of the SWIFT network dedicated to banks. A press release talking about the new platform states: “Just as the SWIFT network created the original common standard for messaging between financial institutions across different settlement systems, UDPN will serve the same purpose for the emerging generation of CBDCs and stablecoins.“.

Proponents of the new digital payment solution said some entities are already involved in the project. Concretely, anumber of Tier 1 bankswill test the network in cross-border transfers and swaps. To do this, proof of concept (PoC) use cases are set up.

No details were provided on the banks participating in the PoCs. However, the following banks were represented at the launch of the system in Davos: Deutsche Bank, The Bank of East Asia, HSBC, Akbank and Standard Chartered.

UDPN will only support CBDCs and stablecoins backed by fiat currencies. These stablecoins will still need to be regulated as payment methods. “No unregulated public blockchain crypto, such as bitcoin, will be accepted“, can we read in the white paper of the new system.

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