National Australia Bank (NAB) has completed the first-ever layer 1 public blockchain cross-border stablecoin transaction.
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.
While Fireblocks reiterated that, these currencies included Australian, New Zealand, Singapore, and US dollars as well as euros, Japanese yen, and British pounds.
On the initiative, NAB collaborated with the Fireblocks platform and BlockFold professional services experts while the stablecoins were created as bank liabilities on ERC-20 standard.
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 rapid change in the tokenisation market. The stringent governance frameworks we have in place ensures we can support the creation of a safe and reliable digital financial system.”
National Australia Bank and cross-border stablecoin transaction
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.
By the end of the year, it noted, it anticipated supporting corporate and institutional clients who transacted in digital assets.
NAB is the second major Australian bank to release an Australian dollar-backed stablecoin.
According to a January statement, the AUDN coin was created with international transfer and carbon credit trade in mind.
NAB was one of the nine founding banks of the global Carbonplace blockchain carbon credit trade network, which was announced in February.
A$DC, an Australian dollar-linked stablecoin, was first released by NAB rival, Australia and New Zealand Banking Group in March 2022 while National Australia Bank (NAB) is the first to complete a cross border stablecoin transaction on a layer-1 blockchain.
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Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.
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