• National Australia Bank (NAB) is set to launch an Australian dollar-pegged stablecoin, named AUDN, on the Ethereum network.
• The AUDN stablecoin is aimed at streamlining cross-border remittances and carbon credit trading.
• NAB chief innovation officer Howard Silby believes blockchain technology has the potential to deliver instantaneous, transparent, inclusive, financial outcomes.
National Australia Bank (NAB) is set to become the second “Big 4” Australian bank to launch an Australian dollar-pegged stablecoin on the Ethereum network. Dubbed AUDN, the new stablecoin is expected to be launched in mid-2023 and is aimed at streamlining cross-border remittances and carbon credit trading.
The decision to mint the AUDN stablecoin was made by NAB chief innovation officer Howard Silby, who believes blockchain technology will play a key role in the next evolution of finance. According to Silby, blockchain has the potential to deliver instantaneous, transparent, and inclusive financial outcomes, and is the perfect medium to facilitate cross-border remittances and carbon credit trading.
The AUDN stablecoin is backed 1:1 by the Australian dollar (AUD) and is expected to provide customers with a faster and more cost-effective way to make cross-border payments and trade carbon credits than traditional methods. The stablecoin is also set to be offered in multiple currencies where the bank has licenses, allowing users to make payments in a variety of currencies quickly and securely.
NAB’s announcement of the AUDN follows nine months after rival Australia and New Zealand Banking Group (ANZ) launched 30 million tokens of its own stablecoin tickered A$DC in March 2020. With the addition of NAB’s AUDN, Australia now has two major banks issuing stablecoins to facilitate payments, remittances, and carbon credit trading.
The launch of the AUDN is part of NAB’s larger effort to build out its digital payments infrastructure, which includes a partnership with software firm Ripple to facilitate real-time payments between businesses in different countries.
For now, NAB is keeping details about the AUDN launch under wraps. However, the bank is expected to provide more information in the coming months, including a timeline for when the stablecoin will be available to the public.