Red Date Technology announces a new project similar to Swift to enhance cross-transactions between stablecoins and CBDCs. The Blockchain Service Network developer launched UDPN in Davos during the World Economic Forum conference.
UDPN to Swift stablecoin and CBDC transactions
According to Red Date Technology, the Universal Digital Payments Network (UDPN) synchronizes transactions between central bank digital currencies (CBDCs) and stablecoins to enhance international payments. Red Date Technology, headquartered in Hong Kong, is a technical architect fully backed by the Chinese state.
The UDPN white paper published by Red date Technology indicates that the new system aims to advance the levels of transactions. It will enable companies and people from different countries to seamlessly transfer funds and transactions through stablecoins and diverse regulated digital currencies.
The company added that UDPN brings coherence and unified transactions in the era of stablecoins and CBDCs, just as Swift brought a common standard for financial institutions from different locations.
Most world banks use the Society for Worldwide Interbank Financial Telecommunication (SWIFT) to transfer funds. The process has enabled many enterprises to make cross-border transactions with ease.
The wake of stablecoins technology is gaining convenience in transactions since stablecoins are pegged to specific currencies. Therefore, stablecoins and CBDCs require a system to boost their operations internationally.
Trial and validation of UDPN on the global scale
Red Date Technology informed the public that many selected “global Tier 1 banks” will conduct trials on the system from January to June. The banks will explore the challenges UDPN might face in the market and provide unique solutions. Among the attributes for testing include digital integration, payment situations, and banking options.
However, Red Date Technology did not mention the names of banks for the test trials. Some banks that sent representatives to the panel during the launch of UDPN include Bank of East Asia, Standard Chartered, Deutsche Bank, and Hongkong and Shanghai Banking Corporation (HSBC). Red Date Technology acknowledges that banks have different protocols for CBDCs, but its system will harmonize the transactions.
Strict rules on transactions
The UDPN system comes into the digital financial paraphernalia as banks set new rules for crypto exchanges. Signature Bank, one of the leading partners of Binance, announced limitations to crypto transactions. The bank informed Binance and retailers of its move to decrease levels of exposure to digital assets. It will handle transactions that exceed $100,000.