Bank of East Asia, UDPN test stablecoin transfers via digital currency wallets

BEA was able to gain insights on CBDCs and the mechanism of stablecoins.

The Bank of East Asia (BEA) partnered with the Universal Digital Payments Network (UDPN) to complete a proof-of-concept for minting, managing, and transferring bank-issued stablecoins and tokenised deposits.

BEA tested making multiple stablecoin transfers via digital currency wallets on the UDPN, BEA and UDPN said in a press release.

The mobile application reportedly enhanced the stablecoin payment process, showcasing how UDPN simplifies stablecoin adoption for non-technical users with instant transactions, BEA and UDPN said in a press release.

Stephen Leung, BEA’s group chief information officer, said that the proof-of-concept enabled the bank to gain insights into global practices on central bank digital currencies (CBDCs) and the mechanism of stablecoins.

“Experiments were conducted on the issuance of stablecoins, as well as the transfer and swapping between CBDCs and stablecoins. Cross-chain interoperability was also examined between stablecoins and digital currencies on different blockchains. This has laid an important foundation for any partnership opportunities that may arise in the future.” said Leung, who is also general manager and head of technology and productivity division at BEA.

BEA will further explore the potential of stablecoin applications and the exchange of the Bank's self-minted stablecoins with those issued by other entities and CBDCs on the UDPN.