Digital Assets: NAB Launches AUDN, A Stablecoin Backed By The Australian Dollar

January 20, 2023 | Digital Assets, Latest News, News
https://dailyalts.com/wp-content/uploads/2023/01/NAB.png

AUDN is fully backed, one-for-one with Australian fiat money held on trust in the bank.

The National Australia Bank (NAB) (ASX: NAB) plans to launch a stablecoin, called AUDN, that will be pegged to the Australian dollar and will be on the Ethereum network.

The stablecoin, expected to launch in mid-2023, aims to streamline cross-border transactions and carbon credit trading.

“We certainly believe there are elements of blockchain technology that will form part of the future of finance,” said NAB chief innovation officer, Howard Silby, to the AFR. “That continues to be the source of some debate. But certainly, from our point of view, we see [blockchain] has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”

NAB stablecoins could also be used in repurchase agreements, a form of short-term finance in bond markets; and for “green deposits”, which link customer savings to green loans, according to Mr Silby.

DigitalX, an ASX-listed digital asset specialist, has pledged to use the AUDN once it is launched to NAB customers.

DigitalX CEO Lisa Wade, a former NAB executive said: “Stablecoins are the link in the chain for essential financial market infrastructure and, absolutely, banks have the regulatory advantage – I can trust my deposit.”

NAB’s announcement comes nine months after rival bank, Australia and New Zealand Banking Group (ANZ) (ASX: ANZ), launched A$DC, its own stablecoin for international trading and settlements.

In June 2022, ANZ’s institutional partner Victor Smorgon used A$DC to purchase Australian Carbon Credit Units from blockchain-based carbon trading platform BetaCarbon.

It will be interesting to see how other financial institutions adopt blockchain technology and stablecoins in the future.

A previous collaboration between NAB, ANZ, and the two other banks in Australia’s Big 4 aimed to launch a nationwide stablecoin backed by the Australian dollar. The project failed because some of the banks were at a different stage in their adoption strategy and didn’t see the adoption of stablecoins this soon on their roadmaps.

Related Story:  Traditional Markets Could Suffer Contagion From (Un)Stablecoins (SEC Chair Gensler)

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…