NAB Joins the Stablecoin Quest as It Launches AUDN

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The National Australian Bank (NAB) follows the footsteps of its rival ANZ in the stablecoin odyssey.

NAB Exchange Rates

After ANZ released and executed its first transaction in March 2022 utilising its A$DC stablecoin, NAB is in second place among the big four to launch its stablecoin. NAB plans to make AUDN available on platforms like the Ethereum blockchain and Alogorand this 2023 summer.

In line with this, Sophie Gilder, managing director of blockchain and digital assets of Commonwealth Bank Australia (CBA), said that the main adversity digital currencies might face is the regulations.

“Proposed regulatory capital rules might make it unattractive. For example, for regulated financial institutions to hold stablecoins,” Gilder said. “Other regulations could also impact who can issue a stablecoin.”

The other banks among the big four — Westpac and CBA still need to release their stablecoins. 

Meanwhile, AUDN is said to be applicable on carbon credit trading, overseas money transfers and repurchase agreements,” said Howard Silb, NAB’s chief innovation officer.

The stablecoin, pegged to the Australian dollar, will allow customers to transfer funds quickly, securely and cost-effectively. It is also expected to positively impact payments in Australia, as it can be used to make instant payments without incurring any exchange rate fees.

Stablecoins enable multiple parties to complete connected transactions simultaneously through a method known as “atomic settlement.”

According to its regional licence agreements, the bank intends to provide stablecoins in “various currencies,” Silb stated.

“As the use cases for stablecoins and other digital assets expand,” 

 “reaching beyond digital finance and into traditional finance, mass adoption is likely to occur as the technology has the potential to improve people’s daily lives,” said Simone Mazzuca, CEO and founder of Wallex, the alternative banking infrastructure.

“Stablecoins, on the other hand, have the potential to change this narrative by allowing consumers to transact at cheaper rates and faster speeds,” he added, comparing stable coins to stablecoins through the lens of accessibility and usability.

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