National Australia Bank conducts the first cross-border stablecoin transaction.
According to National Australia Bank (NAB), it has completed the first-ever layer 1 public blockchain cross-border stablecoin transfer by a significant financial institution. The bank’s fully backed, Australian dollar-pegged AUDN stablecoin was used for the intrabank transfer.
According to a statement made public by the bank on March 14, the transaction was carried out using smart contracts for seven different currencies on the Ethereum blockchain.
According to a statement made public by Fireblocks, these currencies included Australian, New Zealand, Singapore, and US dollars as well as euros, Japanese yen, and British pounds.
The stablecoins were recently created as ERC-20 bank liabilities. On the initiative, NAB collaborated with the Fireblocks platform and BlockFold professional services experts. Drew Bradford, executive general manager for markets at NAB, said:
“We believe that elements of the future of finance will be blockchain-enabled and we’re already witnessing a rapid change in the tokenization market. The stringent governance frameworks we have in place ensure we can support the creation of a safe and reliable digital financial system.”
The test, which was part of NAB’s focus on streamlining global banking standards, demonstrated the technology’s potential to reduce transaction times from days to minutes, the bank said. By the end of the year, it noted, it anticipated supporting corporate and institutional clients who transacted in digital assets.
The second significant bank in Australia to launch a stablecoin backed by the Australian currency is NAB. According to a January release, the AUDN coin’s design was influenced by international transfers and the trade of carbon credits.
NAB was identified as one of the nine founding banks that comprise the global Carbonplace blockchain carbon credit trade network in February.
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