National Australia Bank Concludes Cross-Border Trade Using Ethereum Blockchain Based Stablecoin
National Australia Bank (NAB) created a record as the initial noteworthy lender to execute an intra-bank trans-border trade via its own NAB-based stablecoin on a public blockchain. NAB executed the test trade on the Ethereum blockchain and utilized smart contracts for seven of the world’s most important currencies. The deal showcases the ability to greatly lower the duration and expense of international transactions, which will be advantageous to the corporate and institutional customers of NAB who conduct business across several jurisdictions and currencies.
NAB’s executive general manager of financial markets, Drew Bradford, stated that the bank is making investments in the creation of Australia’s most reliable, straightforward, and secure digital asset environment. Bradford stated, “We have dedicated ourselves to exploring digital asset prospects with unambiguous customer advantages.” We think that blockchain technology will facilitate aspects of the foreseeable future of finance, and the tokenization industry is already undergoing accelerated transformation. We are able to promote the development of a secure and dependable digital banking system because we have in force stringent regulatory mechanisms.”
NAB will completely support its Australian stablecoin, AUDN, with the Australian dollar and administer it as a bank obligation, making it the foundation of NAB’s digital asset aspirations. Furthermore, by the end of this year, it intends to assist chosen customers with digital asset transactions. NAB partnered with Blockfold and Fireblocks to develop and launch its stablecoins on the Ethereum blockchain. This required utilizing their skills in the development of smart contracts, the creation and destruction of stablecoins, and the custody of digital belongings on the blockchain.
Michael Shaulov, CEO and co-founder, stated, “NAB’s effective trade completion marks the start of the transformation of the financial services industry from Web2 to Web3, which is supported by blockchain technology and solid supervision and risk administration.” While the CEO and co-founder of BlockFold, Francois Schonken, stated that “NAB’s successful execution of multi-currency trans-border settlement on a public blockchain is thrilling. The NAB stablecoin network establishes cross-border payment channels that unleash tokenization prospects for both physical assets and financial goods.”
NAB’s goal is to facilitate deals in seven of the most widely used currencies in the world, including Australian, New Zealand, Singapore, and US dollars, Euro, Yen, and Pound Sterling.