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National Australia Bank To Launch Stablecoin On Ethereum And Algorand

The National Australia Bank has announced that it will soon launch a new stablecoin backed by the Australian dollar on Ethereum and Algorand.

By Staff

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After the collapse of Terra’s UST, people from the crypto space have become skeptical about stablecoins. Nevertheless, the industry has seen major developments on this front lately. Market participants, for instance, have been accumulating it as a dry powder in anticipation of a bull run. Entities, on the other hand, have been launching their own variants.

The National Australia Bank has developed its own stablecoin, the AUDN, according to a report from the Australian Financial Review. The stablecoin will enable its users to settle transactions in real-time with Australian dollars while using blockchain technology.

Notably, the bank intends to launch the stablecoin mid-year for transactions. It will be set up on the Ethereum network and Algorand blockchain. NAB’s stablecoin is fully backed, one-for-one by Australian dollars.

Howard Silby, the Chief Innovation Officer for NAB, commented on the recent development saying,

“We certainly believe there are elements of blockchain technology that will form part of the future of finance. 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.”

The Executive also said that in addition to being utilized for regular transactions and international transfers, the stablecoin could also be used for green deposits and bond market repurchase agreements.

The main focus will, however, remain on using the AUDN as a settlement token.

Commenting on the lessons learnt from the UST saga last year, former NAB executive and current CEO of DigitalX Lisa Wade said,

“What we learnt from Luna last year is the look-through of the back book of the stablecoin is the most important thing: if it is not constructed properly, there is counterparty risk.”

The NAB will internally test the stablecoin during the following quarter by transferring funds among its branches and subsidiaries. The AUDN won’t be launched until everything is finalized.

Revealing NAB’s future plans, Silby said,

“We are planning to offer stablecoins in multiple currencies in jurisdictions where NAB has licences.”

Other prominent Australian players have also dipped their toes into the space. Towards the end of Q2 last year, Novatti Group quite confirmed that its deal with Ripple and Stellar to build its AUDC stablecoin was on. Eventually, the stablecoin was launched in November last year on the Stellar blockchain.


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