National Australia Bank (NAB) has announced the successful execution of the world’s first intra-bank cross-border stablecoin transaction using a Layer 1 public blockchain. In this transaction, the NAB-issued stablecoin (AUDN) was pegged to the Australian dollar and was carried out on the Ethereum blockchain using smart contracts for seven different currencies. These include Australian, New Zealand, Singaporean, American, Euro, Japanese Yen, and British pounds.
The success of this pilot marks a significant milestone towards faster and cheaper cross-border payments compared to the traditional SWIFT transfer system.
However, NAB aims to simplify and speed up cross-border payments for corporate and institutional clients in several countries, including New Zealand, Singapore, Japan, the United States, Europe, and Britain.
Drew Bradford, NAB’s Executive General Manager for Markets, expressed his excitement about the bank’s commitment to investment and success in developing Australia’s most secure digital asset ecosystem.
We see blockchain as a key to the future of finance, with rapid changes in tokenisation. Our strict governance ensures a safe and reliable digital financial system.
The bank plans to support corporate and institutional clients in transacting digital assets with robust governance by year-end. NAB aims to support the creation of a safe and reliable digital financial system. While also acknowledging the rapid changes in the tokenization market and blockchain technology’s role in the future of finance.
Fireblocks And BlockFold Partner With NAB To Develop Stablecoins
A new batch of stablecoins was recently created as bank obligations using the ERC-20 standard. To bring this initiative to fruition, NAB teamed up with two industry leaders: the Fireblocks platform and BlockFold, a team of professional services consultants.
Stablecoins have gained popularity in recent years due to their ability to maintain a stable value relative to other cryptocurrencies.
To create these stablecoins, NAB collaborated with Fireblocks, a cutting-edge platform specializing in secure blockchain-based transactions. BlockFold provided their expertise as professional services consultants to ensure the project was executed seamlessly.
According to Michael Shaulov, CEO and Co-founder of Fireblocks, Australia is a global leader in financial services tokenization. He praised NAB for being at the forefront of this movement by becoming the first large financial institution to use a public blockchain for cross-border payment rails.
However, Shaulov views NAB’s trade execution as a milestone for finance’s shift towards Web3 through blockchain technology and risk management.
While Francois Schonken finds NAB’s cross-border settlement execution using a stablecoin on a public blockchain exhilarating. It’s the first time a regulated financial institution has used stablecoin for multi-currency exchange.
He added that NAB’s ecosystem of stablecoins creates cross-border payment rails that unlock the potential for tokenizing real-world assets and financial products.
However, It partnership between NAB, Fireblocks, and BlockFold represents a significant step forward in the world of stablecoins as more and more financial institutions seek to integrate blockchain technology into their operations.
ANZ Becomes First Bank to Launch Australian Dollar-Linked Stablecoin, A$DC
ANZ launched A$DC, the first stablecoin pegged to the Australian dollar in March 2022. Which enables secure and efficient transactions with the help of stable assets. Which is an important milestone for digital currency.
ANZ’s A$DC stablecoin is built on blockchain technology and is designed to facilitate instantaneous and low-cost transactions without intermediaries. However, the use of blockchain technology ensures the security and immutability of transactions, making them resistant to fraud and tampering.
In December, Reserve Bank governor Philip Lowe emphasized the importance of regulating stablecoins and treating them like bank deposits.
However,It provides clarity for traditional banking institutions to enter the stablecoin space, leveraging their existing legal and compliance functions. In addition, Banks may even have regulatory support in developing stablecoins and a ready-made user base with their retail customers. A recent report by Coindesk supports this notion.
In Conclusion, NAB aims to simplify international banking with multi-currency stablecoins, offering speed and transparency while reducing costs and complexity.
However, NAB’s initiative was made possible by partnerships with Fireblocks and BlockFold. This highlights the integration of blockchain technology in finance.
ANZ launched A$DC. It is the first stablecoin pegged to the Australian dollar. Which further shows the growth of digital currencies in Australia. However, it paves the way for traditional banking institutions to enter the stablecoin space with regulatory support.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.