The National Bank of Australia recently send stable coins on the Ethereum blockchain in what is its first cross-border pilot payment. The bank also used smart contracts for various global currencies, thus testing the use of cryptocurrency for its large clients located outside the country. The bank has created its Australian stablecoin, AUDN, that will be backed by the bank 1:1 with the Australian dollar, and will be managed as a liability.
NAB aims to use smart contracts for seven global currencies including the US dollar, UK’s Pound, Euro, Yen and others. Its initial target are institutional clients, and by end of this year it hopes to use digital assets for transactions.
In an official note, the bank said it had minted its own ERC-20 tokens for the cross-border pilot. The bank’s vision, as per an official, is to create a simple, safe and secure digital asset ecosystem.
The pilot was carries out in collaboration with Blockfold and Fireblocks. The partners shared their know-how of creating smart contracts, minting of coins, burning coins, and custody management.
The pilot for settling a cross-border trade marks the beginning of the transition from Web3 to Web3 for the bank. There are other possibilities too, like tokenization or real assets and financial products. An important aspect for the successful functioning of the digital asset ecosystem will be governance and security.
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