UDPN has been designed to facilitate interoperability between regulated stablecoins and CBDCs. Credit: Shubham Dhage on Unsplash.

A consortium of three companies has rolled out a new digital payments offering to facilitate interoperability between regulated stablecoins and central bank digital currencies (CBDCs).

Dubbed Universal Digital Payments Network (UDPN), the offering was launched at the recently held World Economic Forum (WEF) 2023 conference in Davos, Switzerland

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The cross-border digital currency payments solution has been developed by Germany’s GFT, Red Date Technology and TOKO, a digital asset initiative of DLA Piper, over a period of two years.

It has been designed to minimise the cost of digital payments as well as speed up the adoption of digital currency by banks and businesses of different sizes.

As part of the development of UDPN, a sandbox was created in July last year, where various banks undertook the testing of stablecoin transfer and swap (FX) transactions.

The partnership also plans to perform a set of use cases proof-of-concept (POC) studies this month to show the use of UDPN in solving the existing and future challenges of combining digital currency with daily business, banking and payment setups.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A number of global Tier 1 banks are set to take part in the tests.

The initial two POCs will see two banks testing UDPN’s digital currency international transfer and swap transaction competences.

They will also test how financial institutions can implement anonymous stablecoin transfers through the ‘travel rule’ feature.

GFT CEO Marika Lulay said: “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.

“The decentralised approach and geographic breadth of participating firms, combined with the advanced technological solution deployed for these trials, set this network apart.”