GFT, a global IT engineering solutions company, and Red Date Technology, a decentralized cloud infrastructure company, have successfully integrated stablecoins on the Hedera Network and EMTECH CBDC Sandbox into the Universal Digital Payments Network (UDPN). This integration will accelerate the development of programmable payment applications using stablecoins and CBDCs on Hedera.
Stablecoins and central bank digital currencies are revolutionizing the world of payments by providing digital payment services available 24/7. However, the technology faces scalability challenges, especially in layer-1 blockchains, which could hinder its widespread adoption.
To overcome this hurdle, networks like Hedera are developing technological solutions that can process large numbers of transactions quickly and efficiently. HBAR and UDPN Builders are working to implement these technologies in real-world scenarios.
Meanwhile, global interest in central bank digital currencies is growing, with 135 countries looking into them, 3 successfully launching them, and 35 more countries testing them as of March 2024.
GFT has built and integrated two dedicated transaction nodes that connect UDPN to cryptocurrency systems via a single transaction gateway for transfers and inquiries:
One node supports stablecoins launched using Hedera Stablecoin Studio. The other supports central bank digital currencies from the EMTECH CBDC Sandbox.
After processing successful Hedera transactions, these nodes were deployed to a dedicated test environment. Here, Hedera’s HBAR Foundation and Hashgraph tested the core services of UDPN, including decentralized identity creation, linking identities to Hedera accounts, and initiating cross-chain transfers and swaps. The results of the proof-of-concept are detailed in a comprehensive report.
“As payments increasingly move across blockchains through the adoption of stablecoins and central bank digital currencies, the need for Hedera’s native assets to support emerging network payment pathways is clear,” said Sabrina Tashedjian, Head of Fintech and Payments at HBAR. “We have chosen to work with UDPN, a leader in this space, and see this proof of concept as the first step toward connecting Hedera to the larger cryptocurrency ecosystem.”
“This proof of concept highlights the modularity of the UDPN architecture, allowing us to integrate with virtually any cryptocurrency system via a transaction node. This simplifies the adoption of cryptocurrencies in a wide range of applications and reduces integration costs for financial institutions. We are grateful for the support of the HBAR Foundation during this proof of concept and look forward to continuing our collaboration,” said Stephen Schacher, Head of UDPN at GFT.
Instant Payments on Hedera
The success of this proof-of-concept experiment opens up new avenues for cooperation between the HBAR Foundation and UDPN. Future cooperation includes support for the Hedera cryptocurrency once the network launches, as well as the use of Hedera technology to validate UDPN transactions. UDPN participants are looking to explore further intersections between the two technologies, and integrate Hedera technology into UDPN’s overall cryptocurrency platform and other solutions.
Powering the Future of Digital Payments
UDPN, a global payments network that supports regulated stablecoins and central bank digital currencies, enables seamless integration between banks, businesses, and regulated digital payment systems. Its decentralized infrastructure—a distributed network that does not rely on a central authority—enables global payments efficiency, increases financial inclusion, and enables smart contracts that enable additional financial services.
This achievement builds on a series of previous milestones for UDPN, including the launch of the UDPN Solutions platform in June, and the UDPN Cryptocurrency Platform in February. The network also successfully demonstrated the viability of its technology through a joint trial with Standard Chartered and Deutsche Bank in October 2023, which demonstrated the possibility of instant transactions using USDC and EUR stablecoins.
