Australia’s largest bank breaks the blockchain barrier with Ethereum – Cryptopolitan
One of Australia’s largest banks, National Australia Bank (NAB), has broken the blockchain barrier by becoming the first major financial institution to complete a cross-border transaction between banks on the Ethereum blockchain using its own NAB-issued stablecoin.
The successful pilot transaction on the Ethereum blockchain has used smart contracts for seven major global currencies, with NAB investing in the development of Australia’s safest, simplest and most secure digital asset ecosystem.
Reduce the time and cost of cross-border transactions in Australia
The transaction’s success indicates the potential to significantly reduce the time and cost of cross-border transactions, benefiting NAB’s corporate and institutional clients operating in multiple jurisdictions and currencies.
Drew Bradford, NAB’s managing director of markets, said the bank is committed to pursuing the right digital asset opportunities with clear customer benefits.
The success of the transaction was achieved through the rigorous governance framework in place, which ensures that NAB can support the creation of a safe and reliable digital financial system.
NAB’s stablecoin, AUDN, and select customers trading digital assets
NAB plans to fully back its Australian stablecoin, AUDN, one-to-one with the Australian dollar, managing it as a liability to the bank.
This makes it the cornerstone of NAB’s digital asset ambitions, with the bank aiming to support select customers in digital asset transactions by the end of 2023.
NAB partnered with Blockfold and Fireblocks to build and distribute its stablecoins on the Ethereum blockchain. This involved leveraging their expertise in smart contract creation, secure minting and burning of stablecoins, and managing custody of digital assets on the blockchain.
BlockFold CEO and co-founder Francois Schonken said: “NAB’s cross-border multi-currency settlement on a public blockchain is exciting.
The NAB ecosystem of stablecoins puts in place cross-border payment rails that unlock tokenization potential for both real assets and financial products.”
Michael Shaulov, CEO and co-founder of Fireblocks, said that the successful trade execution marks the beginning of the evolution of financial services from Web2 to Web3, underpinned by blockchain technology, strong governance and risk management.
The Ethereum blockchain transaction is a significant milestone for the banking sector, offering new ways to interact with customers and drive engagement.
NAB’s ambition is to enable transactions across seven of the most widely used currencies globally: Australian, New Zealand, Singapore and US Dollars, Euro, Yen and Pound Sterling.
As the first major financial institution to complete a cross-border transaction between banks on the Ethereum blockchain, NAB has taken a significant step forward in transforming financial services from Web2 to Web3.
