One of the four largest Australian banks, the National Australia Bank (NAB), has developed a stablecoin termed AUDN that it plans to introduce in the middle of 2023.
According to the Australian Financial Review (AFR) report, The goal of AUDN is to make it possible for its users to instantly settle transactions utilizing Australian dollars on blockchain technology.
The Ethereum and Algorand blockchains will host the AUDN stablecoin’s initial release. The AUDN will be backed fully by the Australian dollar (AUD) and the NAB will hold the currency.
NAB’s stablecoin will also enable carbon credit trading, cross-border payments, and repurchase agreements along with other features. NAB also plans to offer stablecoins in multiple currencies where bank holds licenses.
NAB is the second of Australia’s big four banks to issue a stablecoin in the country. Last year in March, ANZ minted an AUD-pegged stablecoin A$DC, making it the first Australian lender to issue a digital asset tied to the country’s currency.
NAB chief innovation officer Howard Silby stated “We certainly believe there are elements of blockchain technology that will form part of the future of finance […] From our point of view, we see [blockchain] has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.”
