Stablecoin have become a crucial component of the numerous advancements and breakthroughs taking place in the crypto world, and cryptocurrency networks are not the only ones carrying out brand-new innovations in the virtual currency industry.
A few banks are also noticing significant advancements in their business practices. The National Australia Bank has announced that the first-ever stablecoin transaction utilizing the Australian stablecoin, AUDN, was completed.
NAB Completes Transaction Using a Cross-Border Crypto Stablecoin
The stablecoin transaction, according to the report, took place on the Ethereum blockchain. The bank worked with its partners Fireblocks and Blockfold to make the pilot successful.
Whereas Blockfold is a service consultancy with expertise in tokenization, Fireblocks is an enterprise-grade cryptocurrency platform.
Both parties applied expertise to the many facets of their services on the Ethereum blockchain for the pilot transaction to be successful. Brilliant contract creation, direct cryptocurrency custody management, and stablecoin minting and burning are some of the services offered.
The NAB saw the need for increased speed in cross-border transactions, which was the main impetus for the pilot transaction. It was intended to reduce transaction time from days to minutes.
This step demonstrates the bank’s desire to create stablecoins backed by several currencies to streamline transactions, boost system speed, and guarantee system transparency. More importantly, according to Drew Bradford, executive general manager of NAB Markets, it will facilitate customer interactions and lower costs.
Cross-Border Stablecoin Trade by First Bank
According to Drew Bradford, NAB is the first financial institution in the world to launch a stablecoin transaction on the Ethereum layer-1 public blockchain. He added that the pilot transaction resulted from the financial market’s awareness of the value of blockchain activities.
He said this technology would develop a trustworthy and secure financial system supported by a rigid governance framework. This is clear from the tokenization market’s continuing, rapid advancements.
According to the bank’s release, the pilot transaction will have a global impact on seven currencies. They include the Australian, Singapore, New Zealand, and United States Dollars and the Yen, Pound Sterling, and Euro. The Ethereum layer-1 blockchain is planned to be used by these currencies, improving accessibility, transparency, and scalability.
NAB stated that the Australian stablecoin (AUDN) would be backed by the Australian dollar, the nation’s official currency. According to Michael Shaulov, CEO and co-founder of Fireblocks, this is a new era for the bank as it begins a financial transition from Web2 to Web3 technology.