NAB completes historic cross-border transaction using Stablecoin on Ethereum Blockchain
National Australia Bank (NAB) has made history as the first major financial institution to complete a cross-border transaction between banks on a public blockchain using its own NAB-issued stablecoin.
NAB conducted the pilot transaction on the Ethereum blockchain using smart contracts for seven major global currencies. The success of this transaction demonstrates 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.
In accordance Drew Bradford, NAB’s managing director of markets, the bank is investing in the development of Australia’s safest, simplest and most secure digital asset ecosystem.
“We are committed to pursuing the right digital asset opportunities with clear customer benefits,” Bradford said. “We believe that blockchain technology will enable elements of the future of finance, and we are already witnessing rapid change in the tokenization market.” The strict governance frameworks we have in place ensure that we can support the creation of a safe and reliable digital financial economy. system.”
NAB will fully back its Australian stablecoin, AUDN, one-to-one with the Australian dollar and manage it as a liability to the bank, making it the cornerstone of NAB’s digital asset ambitions. In addition, it aims to support selected customers in transactions with digital assets by the end of 2023.
Stablecoin Partnership
NAB collaborated with Blockfold and Fire blocks to build and distribute their stablecoins on the Ethereum blockchain. This involved leveraging their expertise in smart contract creation, secure stablecoin minting and burning, and managing the storage of digital assets on the blockchain.
Michael ShaulovCEO and co-founder, said: “NAB’s successful trade execution marks the beginning of the evolution of financial services from Web2 to Web3, underpinned by blockchain technology as well as strong governance and risk management”.
While BlockFold CEO and co-founder Francois Schonken, added: “NAB’s multi-currency cross-border 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.
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.
