NAB has developed an AUDN, crypto pegged with the Australian dollar.
The stablecoin establishment will ease out many complex and confusing processes.
Australia’s second native currency-backed stablecoin is going to be live soon, as regulated banks around the globe are turning their focus over the stablecoins. National Australia Bank (NAB) has developed an AUDN, having a one-to-one peg with the Australian dollar. Australia and New Zealand Banking Group Limited (ANZ) released the first of this kind stablecoin.
Miles Deutscher, an Australian crypto analyst tweeted:
Australia’s 2nd biggest bank, NAB, is launching a stablecoin called AUDN on the Ethereum network.
Could widespread bank adoption of L1 networks to power stablecoins be a bullish thing for crypto?
— Miles Deutscher (@milesdeutscher) January 19, 2023
The Australian Financial Review (AFR) reported the news regarding the launch of this fiat-pegged crypto. Executives of the NAB believe the introduction of stablecoins will boost the implementation and adaptation of cryptocurrency and blockchain on a wide scale.
AUDN is built over the Ethereum network and will be live for transactions from mid of the year 2023. The processes will include cross-border transactions and carbon credit trading.
Centralized Bank on Stablecoins
Stablecoin is a friendly option for traders who wish to take minimum risk in the cryptocurrency market. But the above situation turned upside post the crypto crashes in 2022. The collapse of the largest algorithmic stablecoin TerraClassicUSD (USTC) has started doubts in the minds of people.
Parallelly, licensed and centralized financial institutions have taken up this chance to enter into the blockchain arena. Also, this is a more welcoming approach in the view of business customers.
Lisa Wade, CEO of DitigalX stated:
“Stablecoins are the link in the chain for essential financial market infrastructure and, absolutely, banks have the regulatory advantage – I can trust my deposit.”
The centralized authorities also realize the importance of blockchain technology in the financial sector. The crypto establishment will ease out many complex and confusing processes in the existing transactions.
And the dependability on CHESS and SWIFT will also be replaced. Apart from Australia, the other nations which are in talks to instigate stablecoin are Russia and Iran.