Blockchain Transactions: Deutsche Bank Tests Stablecoins & CBDCs

Deutsche Bank & Standard Chartered test blockchain-based transactions for stablecoins & CBDCs. Subscribe to First Mover for daily crypto updates.
blockchain-based transactions

Blockchain-based transactions, stablecoins, and central bank digital currencies (CBDCs) are being tested for communication by Deutsche Bank and Standard Chartered’s SC Ventures. The Universal Digital Payments Network (UDPN) is a system that functions similarly to the SWIFT messaging layer in traditional banking infrastructure. Developed by GFT Group and Red Date Technology, this permissioned blockchain system comprises validator nodes run by a consortium of banks, financial institutions, and consultancies. It enables transactions across various networks, from stablecoins on public blockchains to CBDCs.

In a legal case involving Sam Bankman-Fried, his defense team is seeking permission from Judge Lewis Kaplan to question him about certain aspects of FTX’s operation and the involvement of the company’s counsel. They aim to demonstrate that Bankman-Fried did not intend to defraud customers or investors and relied on advice from his lawyers. The defense wants him to testify about his knowledge of FTX’s operation, industry practices, his intentions with FTX’s funds, and his understanding of FTX and Alameda’s financials. Topics include FTX’s use of auto-deletion policies for Signal and Slack messages, the opening of North Dimension and its bank accounts, loans made from FTX and Alameda Research to executives, and other relevant issues.

JPMorgan is now handling $1 billion worth of transactions per day with its digital token JPM Coin, which was launched in 2019. This settlement token allows JPMorgan’s institutional clients to make blockchain-based wholesale payments globally. Initially denominated in dollars, support for euros was added in June. The bank plans to expand the usage of JPM Coin further. Takis Georgakopoulos, the head of payments at JPMorgan, stated that JPM Coin is predominantly transacted in U.S. dollars but will continue to broaden its reach.

According to IntoTheBlock, the number of whale addresses in Bitcoin remains near bear market lows despite the resurgent price. This metric typically rises during bull markets and consolidates near bull market peaks. The current lack of increase in whale addresses suggests that a new bull cycle has not yet begun.

The testing of the UDPN system for blockchain-based transactions, stablecoins, and CBDCs by Deutsche Bank and Standard Chartered’s SC Ventures highlights the growing interest in digital currencies and their potential for transforming the financial landscape. As the system enables transactions across various networks, it could potentially streamline and improve the efficiency of cross-border payments and settlements. This development is particularly significant given the increasing adoption of digital currencies by banks, financial institutions, and governments worldwide.

Moreover, JPMorgan’s handling of $1 billion worth of transactions per day with JPM Coin demonstrates the growing acceptance and usage of digital tokens in the financial sector. As the bank plans to expand the usage of JPM Coin and broaden its reach, it is likely that other financial institutions will follow suit, further integrating digital currencies into the global financial system.

In conclusion, the testing of the UDPN system and the increasing usage of digital tokens such as JPM Coin indicate a growing interest in blockchain-based transactions and digital currencies. As more banks, financial institutions, and governments continue to explore and adopt these technologies, it is likely that the financial landscape will be transformed, potentially leading to greater efficiency, security, and accessibility in the global economy.