Key Takeaways
- The intrabank transfer used NAB’s fully backed AUDN stablecoin and was issued as an ERC-20 token.
- NAB had collaborated with Digital asset infrastructure provider Fireblocks and a fintech platform to deploy its stablecoins.
One of Australia’s ‘big four’ bank-the National Australis Bank, announced it had completed its first intra-bank cross-border transaction using its own stablecoin via Ethereum.
According to the official statement, the intrabank transfer used NAB’s fully backed AUDN stablecoin, which is tied to the Australian dollar. NAB had collaborated with Digital asset infrastructure provider Fireblocks and a fintech platform to deploy its stablecoins.
The bank also states that its stablecoin was issued as an ERC-20 token. Commenting on the development, NAB Executive General Manager, Markets, Drew Bradford, stated, “We believe that elements of the future of finance will be blockchain-enabled, and we’re already witnessing a rapid change in the tokenisation market.”
BlockFold CEO and Co-founder Francois Schonken described NAB’s multi-currency cross border settlement execution as exhilarating in his statement. “This trade marks the first cross-border multi-currency exchange executed by a regulated large financial institution (NAB) backed stablecoin”, Francois claimed
Further, in its statement, NAB claimed the pilot’s success is indicative of the bank’s potential to cut cross-border transactions from days to minutes. The bank added that the latest execution brings it one step closer to enabling clients who operate in multiple jurisdictions and currencies a simpler and faster experience.
NAB is, however, the second among Australia’s big four banks to launch a stablecoin, after competitor Australia and New Zealand Bank (ANZ) minted its own called A$DC in 2021.
The pilot execution also comes amid reports that crypto adoption in Australia is spiking. According to a November 2022 survey conducted by the Independent Reserve Cryptocurrency Index,92% of Australians have heard of cryptocurrencies.
Under Australia’s Prime Minister Anthony Albanese, the country has also pledged to modernize its financial system and update its regulatory framework to adapt to crypto and other innovations. This regulatory move is further expected to boost crypto adoption in the island country.
In another major development in the digital asset sector in Australia, earlier this month, the Reserve Bank of Australia (RBA) announced an upcoming pilot phase for the digital version of the Australian dollar/CBDC called the eAUD.
