UDPN Integrates Hedera-Powered Stablecoins & CBDCs for Seamless Payments
GFT, a global IT engineering solutions provider, and Red Date Technology, a decentralized cloud infrastructure company, have successfully integrated stablecoins on the Hedera network and the EMTECH CBDC Sandbox into the Universal Digital Payments Network (UDPN). This integration will accelerate the development of programmable payment applications using stablecoins and Central Bank Digital Currencies (CBDCs) on Hedera.
Stablecoins and CBDCs are revolutionizing digital payments by offering 24/7 transaction capabilities for businesses. However, Layer 1 blockchain scalability issues may slow widespread adoption. High-performance networks like Hedera aim to overcome these challenges by enabling more efficient transaction processing. The HBAR Foundation and UDPN Builders are actively working to develop real-world digital currency use cases. Meanwhile, CBDC development is gaining momentum globally, with 135 countries exploring them, 3 having launched, and 35 in pilot phases as of March 2024.
Connecting Hedera to UDPN
In this proof of concept (PoC), GFT built and integrated two custom transaction nodes that connect UDPN to digital currency systems via a single transaction gateway for transfers and queries:
- One node supports stablecoins launched with Hedera Stablecoin Studio.
- The other supports CBDCs from the EMTECH CBDC Sandbox.
Following successful Hedera transaction processing, these nodes were deployed in a dedicated test environment. Here, the HBAR Foundation and Hedera’s Hashgraph tested UDPN’s core services, including decentralized identity creation, linking identities to Hedera accounts, and initiating transfers and cross-chain swaps. The PoC’s findings are detailed in a comprehensive report.
Sabrina Tachdjian, head of Fintech and Payments Fund at the HBAR Foundation, emphasized, “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, stated, “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.”
Instant Payments on Hedera
The successful completion of this PoC paves the way for further collaboration between the HBAR Foundation and UDPN. Future initiatives include supporting Hedera digital currencies at network launch and using Hedera technology to validate UDPN transactions. UDPN participants will continue exploring synergies, integrating Hedera technologies with the UDPN All-in-One Digital Currency Sandbox and other UDPN solutions.
Powering the Future of Digital Payments
UDPN, the world’s leading global payments messaging network supporting regulated stablecoins and CBDCs, facilitates seamless interoperability among banks, businesses, and regulated digital currency systems. Its decentralized infrastructure enhances global payment efficiency, financial inclusion, and the execution of third-party smart contracts for value-added financial services.
This milestone builds on UDPN’s previous achievements, including the June launch of UDPN Solutions, the February rollout of the UDPN All-in-One Digital Currency Sandbox, and a proof-of-concept conducted by Standard Chartered Bank’s SC Ventures and Deutsche Bank in October 2023, which showcased real-time transactions between USDC and EURS stablecoins.
