A Hong Kong-based blockchain firm has launched a digital funds system aimed toward bridging the hole between stablecoins and central financial institution digital currencies (CBDCs).

Pink Date Know-how, the blockchain infrastructure agency that can be main considered one of China’s blockchain efforts, launched the Common Digital Fee Community (UDPN) on Jan. 19 throughout the World Financial Discussion board (WEF) 2023 assembly in Davos, Switzerland.

Tech engineering firm GFT Applied sciences and the digital asset creation engine TOKO from legislation agency DLA Piper are additionally contributors to UDPN growth.

Based on its white paper, the UDPN is a distributed ledger know-how (DLT) platform that will serve an analogous goal to what the SWIFT community does for banks, aside from stablecoins and CBDCs.

“Simply because the SWIFT community created the unique frequent normal for messaging between monetary establishments throughout completely different settlement techniques, the UDPN will serve the identical goal for the rising technology of CBDCs and stablecoins.”

Based on a Jan. 19 press launch, a “variety of world tier 1 banks” are already concerned in use case proof of ideas (POCs) to check the community in cross-border transfers and swaps.

The discharge didn’t disclose which banks have been participating within the POCs, however Deutsche Financial institution, HSBC, Customary Chartered, The Financial institution of East Asiaand Akbank have been represented on a panel on the UDPN launch in Davos.

A high-level overview of the UDPN structure depicting CBDC techniques connecting to off-chain “transaction nodes” which in flip hook up with the on-chain “validator nodes.” Supply: UDPN white paper.

The stablecoins for use within the POC have been additionally undisclosed. The networks whitepaper does state, nonetheless, that it solely helps “CBDCs and controlled fiat-backed stablecoin forex techniques as fee strategies,” including:

“No unregulated public-chain crypto-currencies, equivalent to Bitcoin, will probably be accepted.”

Eight different proof-of-concept exams are scheduled for the community, together with issuing and circulating a CBDC and bank-issued stablecoin and utilizing UDPN as a fee gateway for e-commerce.

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The UDPN has been in growth by Pink Date for practically two years,

Earlier than launching this digital funds system, the corporate was recognized for its work on Blockchain-based Service Community (BSN), China’s nationwide blockchain venture.

In a now-deleted roadmap posted on Jan. 15, 2021, the BSN mentioned it deliberate to construct a world CBDC system that “will utterly change the present fee and circulation technique, enabling a standardized digital forex switch technique and fee process for any info system.”

The newest white paper makes no point out of Pink Date’s involvement in steering China’s blockchain venture, nor of the nation’s personal CBDC efforts with its digital yuan.

A spokesperson for the venture informed Cointelegraph there’s “no connection in any respect between BSN and UDPN” because the latter is “managed and ruled in a decentralized method.”

In June, Pink Date’s CEO, Yifan He, known as cryptocurrencies the “largest Ponzi scheme in human historical past.”

Replace (Jan. 23, 6:40 AM UTC): Added remark from UDPN spokesperson.