SWIFT killer? Deutsche Bank works on blockchain integration

Deutsche Bank is working on a network based digital identity and connecting blockchain networks. Will this integration provide a threat to the SWIFT network?

Deutsche Bank and Standard Chartered Ventures are testing a system that will allow blockchain-based transactions, stablecoins and CBDCs (Central Bank Digital Currencies) to communicate with each other. Deutsche Bank confirmed this.

According to the report, the two banks are exploring crypto transactions in the so-called Universal Digital Payments Network (UDPN). A first transaction has already been successful, but so far "in a pure test environment", as Deutsche Bank explains. UDPN is an authorized blockchain system with validation nodes managed by banks, financial institutions and consulting firms - similar to the SWIFT network (the global payment network).

The network acts as a bridge between different blockchains and uses decentralized digital identity standards (DIDs). This combination enables a bank-friendly and regulated environment and raises the question of whether SWIFT transactions running in parallel are necessary.