The National Australian Bank (NAB) has completed an intrabank cross-border transaction using its minted stablecoin.
The pilot transaction was conducted jointly with Fireblocks and Blockfold on the public Ethereum blockchain without any permissions. Testing included the deployment of stablecoin smart contracts for seven major world currencies. The financial institution reported that the pilot transaction was successful and is evidence that there is a potential to reduce the time for cross-border financial operations from a few days to a few minutes.
The Australian NAB stablecoin, AUDN, is backed in a one-to-one ratio by the Australian dollar and is managed as a bank liability.
NAB follows the goal, which is to enable transactions in the seven most commonly used currencies in the world: Australian, New Zealand, Singapore, and US dollars, Euro, yen, and pound sterling. The financial institution intends to support selected corporate and institutional clients in conducting operations using digital assets by the end of this year.
NAB’s executive General Manager of markets, Drew Bradford, said the bank is committed to leveraging the power of digital assets with obvious benefits for consumers. He also expressed confidence that elements of the future of finance will be based on blockchain, which is confirmed by the current rapid changes in the tokenization market. Separately, the representative of the bank stressed that a strict management framework is a guarantee of creating a safe and reliable digital financial system.
Rival ANZ bank completed the first internal transaction for its A$DC stablecoin last year. But, according to Drew Bradford, NAB’s cross-border multicurrency pilot project is notable for being the first in the world for a large financial institution.
NAB is one of the largest banks in Australia. The financial institution was founded in 1893. As of 2010, the bank’s assets amounted to 685 billion Australian dollars.
As we have reported earlier, NatWest and NAB Recommend Australia to Create Organization Modeled on OBIE.