National Australian Bank (NAB) Executes Its First Cross – Border Stablecoin Transaction

March 15, 2023

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The National Australian Bank has successfully executed its first–ever cross-border Stablecoin transaction on the layer-1 public blockchain. This intrabank transaction used the AUDN, which is the bank’s fully backed Stablecoin tied with the Australian Dollar.

This Stablecoin transaction took place on the Ethereum blockchain using smart contracts designed for seven currencies. Reportedly, these currencies were the United States, New Zealand, Singapore, and Australian Dollar along with Japanese Yen, British Pounds, and Euros. These stablecoins were minted as bank liabilities on the ERC–20 standard in partnership with NAB  on the Fireblock platform and Block Fold professional service consultants.

In the pilot project, the technology’s potential was focused on cutting down the transaction time from days to minutes using simplified international banking protocols. The NAB has become the second major Australian Bank to issue Australian dollar–backed Stablecoin with a focus entirely on cross-border transactions and carbon credit trading.

The bank eyes “green” Stablecoin which would act as an intermediary between investors for executing sustainable solutions. At the beginning of the year, the bank also launched a Stablecoin for carbon credit settlement and then announced its plan to use blockchain technology for recording sustainable agricultural practices. Thus, through this collaboration, the bank expects to facilitate corporate and institutional clients in transacting digital assets by the end of the year.

Alongside, the NAB was also listed among the nine founding banking members of the International Carbon place Blockchain Carbon Credit Transaction Network. The New Zealand Banking Group which is the competitor to National Australian Bank was the first bank to issue an Australian dollar –pegged Stablecoin named A$DC in March 2022.

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