- The Australian stablecoin AUDN will be named.
- It will be supported one-for-one with the Australian dollar.
- The stablecoin will allow users to settle transactions via blockchain technology.
Despite being skeptical of the stabilitycoin space, particularly after the collapse and subsequent recovery of Terra UST, many entities have started to launch their own stablecoin versions. The Australian Bank is now part of this trend.
The Australian Financial Review Thursday reported The National Australia Bank (NAB), is creating an Australian dollar-backed stablecoin called the AUDN. This news comes just days after Russia and Iran announced that they would create a gold-backed stablecoin.
Launch date for AUDN is anticipated
According to the report NAB anticipates launching stablecoins in mid-2017.
The stablecoin is fully supported by the Australian dollars one-for-one. It will run on both the Ethereum network as well as the Algorand blockchain. The Australian citizen can use blockchain technology to settle transactions in real time using the Australian dollar. Users will also be able to use the stablecoin in bond market repurchase agreements and for “green deposits” besides settling transactions and cross-border remittances.
Howard Silby (NAB Chief Innovation Officer) commented on the developments:
“We certainly believe there are elements of blockchain technology that will form part of the future of finance. It continues to be the subject of much debate. However, this is what we see. [blockchain] has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”
Stablecoins that are backed with other currencies
Silby also disclosed that the bank plans to launch other stablecoins that are backed by currencies other than the one it is licensed in. He stated that:
“We are planning to offer stablecoins in multiple currencies in jurisdictions where NAB has licenses.”
NAB is currently testing stablecoin using it to move funds between branches and subsidiaries. The bank joins other Australian players, such as the Novatti Group. It confirmed towards the end the second quarter 2022 that it was working on its stablecoin program called AUDC stablecoin.