The Universal Digital Payment Network (UDPN) was launched yesterday at the World Economic Forum in Davos. It’s a blockchain-based network to provide interoperability between regulated stablecoins and CBDC. The three organizations behind the initiative are German digital consultancy GFT, Red Date Technology and DLA Piper’s digital asset initiative TOKO.
“The purpose of UDPN is to investigate a potential alternative to existing payments systems by enabling interoperability between fiat-backed tokens of stablecoins and regulated protocols,” said Marika Lulay, CEO of GFT. “The decentralised approach and geographic breadth of participating firms, combined with the advanced technological solution deployed for these trials, set this network apart.”
It plans to work with stablecoins and CBDC across bother decentralized and centralized currency systems. It states it will support regulated fiat-backed stablecoins, but “no unregulated public-chain cryptocurrencies, such as Bitcoin, will be accepted.” The addition of any new currency is put to the vote by UDPN Alliance members, and the DLT network is a permissioned one based on Hyperledger Besu.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
