Commercial banks are apparently interested in stablecoins. In Australia, the National Australia Bank (NAB) just announced the upcoming launch of a stablecoin on Ethereum and Algorand. Update on this innovative design, which could be imitated.
A major Australian bank will launch a stablecoin
This Australian dollar-backed stablecoin will allow users to quickly settle transactions using the blockchain. According to the Australian Financial Review, which reported the news, the launch is scheduled for this yeartowards the summer. In particular, two uses are highlighted: the exchange of carbon credits and cross-border transfers.
The stablecoin, dubbed AUDN, will be backed by an equivalent number of Australian dollars held by the bank. Initially, the good will be available on the Ethereum network, then on Algorand. For the bank, the interest is to offer a fast payment system, which has lower volatility than other cryptocurrencies.
👉 To go further – Stablecoin, all about this type of cryptocurrency
The platform that simplifies trading
Buy cryptocurrencies in minutes
Australian banks are transitioning to blockchain
National Australia Bank is not the first major bank in Australia to have a stablecoin. Its rival Australia and New Zealand Banking Group (ANZ) already created such an asset last March. It should be noted that the country’s four largest banks met at the beginning of last year to try to create a common stablecoin.
But the negotiations were unsuccessful and as a result, they are now creating unique stablecoins. In any case, the use of blockchain seems to be a milestone for the National Australia Bank. In any case, this is what the institution’s innovation manager reports:
“We certainly think there are elements of blockchain technology that will be part of the future of finance.»
The word “stablecoin” is still trendy, even if the crypto ecosystem has just experienced a particularly turbulent year. We learned earlier this week that Iran and Russia wanted to create a common gold-backed stablecoin. Further proof that this type of asset is gradually finding its place on the international scene.
👉 Listen to this article and all other cryptocurrency news on Spotify
Cryptoast launches its first collection of NFTs
NFTs associated with a collectible paper diary 🔥
Source: Australian Financial Review
News 🍞
Receive a roundup of cryptocurrency news every Monday by email 👌
What you need to know about affiliate links. This page features investment related goods, products or services. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of using a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
MFA recommendations. A high return is not guaranteed, a product with a high return potential carries a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose some of these savings. Do not invest if you are not ready to lose all or part of your capital.
Read more on our Financials, Media Transparency and Legal Notices pages.
Cryptoast reporter, I fell into the cryptocurrency pot a few years ago. I am passionate about the innovative technologies that come with the blockchain and I like to find the sharpest information to share with you.
Marine Debelloir
2264 items