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NAB says the pilot shows that using blockchain technology for international transactions can reduce transaction times to minutes rather than days.
According to a March 14 statement by National Australia Bank (NAB), one of Australia’s four major banks, the institution has successfully conducted cross-border stablecoin transactions. Transactions use internal stablecoins minted with the ERC-20 standard.
NAB made transactions on Ethereum blockchains. It’s involved deploy stablecoin smart contracts for seven leading global fiat currencies, such as United States, New Zealand, Australian, and Singaporean dollars, British pounds, Japanese yen, and euros.
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To carry out the pilot, the bank worked with Blockfold, an advisory service specializing in tokenization, and Fireblocks, an enterprise-grade digital asset platform. Both companies assisting banks in topics such as smart contracts, printing and burning of tokens, and managing digital asset stores.
The bank said the transaction highlighted the potential of blockchain technology to reduce cross-border transaction times from days to minutes. According to Drew Bradford, executive general of NAB markets:
Bringing a multi-currency stablecoin to market demonstrates NAB’s focus on simplifying international banking protocols to increase speed and transparency while lowering costs and reducing complexity for customers.
The successful transaction made NAB the first major financial company in the world to settle stablecoin transactions on a public blockchain.
Initially, only a select list of institutional and corporate clients will have access to stablecoins. According to banks, Australian Stablecoin (AUDN) is backed 1:1 by the Australian dollar and is managed as one of its obligations. Its publishing is in line with its goals in the digital asset space.
News of National Australia Bank’s plans to launch an Australian dollar-pegged stablecoin broke in January. Back then, the bank claimed it would launch a stablecoin in mid-2023.
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