The National Australia Bank (NAB) will become the second major financial institution in the country to launch a stablecoin, an executive told the Australian Financial Review (AFR). The token, called AUDN, will launch on the Ethereum and Algorand blockchains later this year.
NAB chief innovation officer Howard Silby told the AFR that the stablecoin would allow customers to use Australian dollars to settle transactions on the blockchain in real time.
NAB will be the second of Australia’s big four banks to launch a stablecoin, after rival Australia and New Zealand Bank (ANZ) launched its own stablecoin called A$DC last year.
The early use of A$DC shows that the Australian dollar stablecoin can play a role in Australia's energy transition plans. In June, an investor purchased carbon credits using the stablecoin.
NAB’s stablecoin will also allow carbon credits to be traded, AFR reported. Other features may include cross-border payments and repurchase agreements. Individual banks are developing their own stablecoins after unsuccessful attempts to collaborate on a single industry-wide Aussie stablecoin. The project never got off the ground due to competition concerns and the different stages each bank was in in its crypto strategy.
