Universal Digital Payment Network (UDPN), Giesecke+Devrient (G+D), and GFT Technologies (GFT) have joined the Commercial Bank Money Token (CBMT) initiative as technical service providers.

The project is designed to enable tokenised commercial bank money, facilitating direct and secure transactions between businesses using distributed ledger technology (DLT).

The CBMT initiative seeks to establish a scalable and regulatory-compliant framework for digital financial solutions.

A proof-of-concept has already demonstrated its potential in real-world applications with commercial banks including DZ Bank, UniCredit and Commerzbank, alongside corporates such as Siemens, BASF, Evonik and Mercedes-Benz.

The three firms will contribute onboarding and interoperability services, banking and enterprise system integration, and DLT-based technologies from UDPN.

Planned tests cover delivery-versus-payment in supply chain and trade finance, inter-company cross-border transactions, and working capital optimisation, as well as advanced IoT and machine-to-machine payments, both online and offline.

The working group also aims to bring more banks and enterprises into the CBMT network to expand its reach and functionality.

“Stablecoins and tokenised deposits like CBMTs will support the ongoing digitalisation of business process automation and IoT payments.

Tailored to the specific needs of the ecosystem, the CBMT initiative will provide the first platform for seamless issuance, management, and operation of tokenised deposit services. We are proud to be part of this initiative of making the financial ecosystem more digital, efficient and secure,”

said Abbas Albasha, Senior Strategy Consultant CBDC at Giesecke+Devrient.

“Commercial bank money tokens empower corporates to execute digital transfers, fostering fast and efficient financial operations in the digital economy.

UDPN and GFT’s engagement in the CBMT initiative reflects our commitment to building a financial technology system that will accelerate global digital transformation,”

said Florian Becker, Managing Director APAC & GCC at GFT.

Featured image: Edited by Fintech News Singapore, based on image by user8285578 via Freepik