October 4, 2024<\/p>\n\n\n\n
By Our Correspondent<\/p>\n\n\n\n
Hong Kong’s Bank of East Asia (BEA) has recently undertaken a proof of concept (PoC) focused on the issuance of stablecoins through the Universal Digital Payments Network (UDPN), according to Ledger Insights. <\/em><\/em><\/p>\n\n\n\n This initiative involved testing both the minting and burning processes of stablecoins, as well as trialing a mobile application designed for client use. Currently, the majority of stablecoin transactions occur within the cryptocurrency sector or in regions where consumers are eager to utilize dollar equivalents.<\/p>\n\n\n\n One of the primary obstacles to the mainstream adoption of stablecoins has been the lack of necessary infrastructure. However, this situation is evolving, positioning stablecoins to become more competitive with traditional bank payment systems, particularly in cross-border transactions.<\/p>\n\n\n\n In response, banks are actively participating in multi-bank tokenized deposit trials and are developing their own tokenized deposits or stablecoins. The UDPN represents a comprehensive initiative that facilitates the issuance of stablecoins and tokenized deposits while also establishing an interoperability framework among various digital currencies, including central bank digital currencies (CBDCs).<\/p>\n\n\n\n “Through our PoC with UDPN, we have acquired valuable insights into global trends regarding Central Bank Digital Currencies (CBDCs) and the operational mechanisms of stablecoins,” stated Stephen Leung, Group CIO, General Manager, and Head of Technology and Productivity Division at BEA. “Experiments were conducted on the issuance of stablecoins, as well as the transfer and exchange between CBDCs and stablecoins. We also explored cross-chain interoperability among stablecoins and digital currencies across different blockchain platforms. This work has established a significant foundation for potential partnership opportunities in the future.”<\/p>\n\n\n\n Earlier this year, the bank participated in a distributed ledger technology (DLT) repo transaction with HSBC, which involved digital green bonds issued in Hong Kong.<\/p>\n\n\n\n The UDPN was established by Red Date Technology, a co-founder of China’s Blockchain-based Service Network (BSN) and the international BSN Spartan Network, with GFT consultancy serving as its development partner. Earlier this year, it also launched a sandbox environment for banks.<\/p>\n","protected":false},"excerpt":{"rendered":" October 4, 2024 By Our Correspondent Hong Kong’s Bank of East Asia (BEA) has recently undertaken a proof of concept (PoC) focused on the issuance of stablecoins through the Universal Digital Payments Network (UDPN), according to Ledger Insights. This initiative involved testing both the minting and burning processes of stablecoins, as well as trialing a […]<\/p>\n","protected":false},"author":4,"featured_media":6444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6441","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uncategorized"],"yoast_head":"\n