UDPN Integrates Stablecoins and CBDCs Issued on the Hedera Network

Today, global IT engineering and solutions provider GFT and decentralised cloud infrastructure company Red Date Technology, have successfully integrated Hedera stablecoins and the EMTECH CBDC Sandbox on the Universal Digital Payments Network (UDPN). This new integration will ease the development of programmable payment applications leveraging stablecoins and CBDCs issued on Hedera. 

Stablecoins and CBDCs are transforming digital payments, offering 24/7 transactions for businesses. However, scalability issues on Layer 1 blockchains may hinder widespread adoption. High-performance networks like Hedera aim to solve these challenges with more efficient transaction processing. The UDPN Builders and the HBAR Foundation are working towards enabling real-world digital currency use cases. Meanwhile, central banks are rapidly developing CBDCs, with 135 countries exploring them, 3 having launched, and 35 in pilot stages as of March 2024

‍Connecting the Hedera Network to the UDPN‍

In this proof of concept (PoC), GFT developed and integrated two custom transaction nodes, connecting the UDPN to the digital currency systems through a single transaction gateway for transfers, transactions, and query results:

• One supporting stablecoins launched with the Hedera Stablecoin Studio 
• One supporting CBDCs from the EMTECH CBDC Sandbox

Upon successfully processing Hedera transactions, the transaction nodes were deployed in a dedicated test instance, where the HBAR Foundation and Hashgraph were invited to test the UDPN core services, including creating a decentralized identity, mapping this decentralized identity to a Hedera account, and initiating transfers and cross-chain swaps. The details of the PoC are described in this report. 

Sabrina Tachdjian, who leads the Fintech and Payments Fund at the HBAR Foundation, said “As payments increasingly migrate on-chain through the adoption of stablecoins and CBDCs, the need for Hedera-native assets to support emerging cross-chain payment rails has become clear. We chose to work with UDPN - a trailblazer in the field - and see this PoC as a first step towards connecting Hedera with the greater digital currency ecosystem.”  

Steffen Schacher, UDPN Lead at GFT, said, “This PoC highlights the modularity of the UDPN architecture, which allows us to integrate with virtually any digital currency system via a transaction node. This simplifies the adoption of digital currencies in a wide range of applications and reduces integration costs for financial institutions. We are thankful for the support of the HBAR Foundation during this PoC and look forward to continuing our collaboration.” 

Enabling instant payments on the Hedera Network

The successful execution of this PoC laid the ground for the HBAR Foundation and the UDPN to explore further collaboration opportunities, such as supporting Hedera digital currencies when the network launches and leveraging Hedera technologies to validate UDPN transactions. In preparation for its full deployment, UDPN participants will continue exploring synergies with the HBAR Foundation, such as integrating Hedera technologies with the UDPN All-in-One Digital Currency Sandbox and other UDPN solutions. ‍

Powering the Future of Digital Payments‍

The UDPN, the world’s leading global payments messaging network supporting regulated stablecoins and Central Bank Digital Currencies (CBDCs), facilitates seamless interoperability among banks, businesses, and regulated digital currency systems worldwide. This decentralised infrastructure not only boosts global payment efficiency and financial inclusion but also enables the deployment and execution of third-party smart contracts for a variety of value-added financial and payment-related services.

This significant milestone follows the June launch of UDPN Solutions, the February launch of the UDPN All-in-One Digital Currency Sandbox, and the successful proof-of-concept conducted by Standard Chartered Bank's SC Ventures and Deutsche Bank, showcasing real-time digital transactions between USDC and EURS stablecoins in October 2023. ‍

Learn more!‍

To learn more about the Universal Digital Payment Network (UDPN) Sandbox and how it can benefit your organisation or to arrange a demonstration, interested parties are encouraged to visit udpn.io or to reach out via email at contact@udpn.io