Stablecoins have become an integral part of the multiple developments and improvements that are ongoing in the crypto sphere and cryptocurrency networks are not the only systems executing new developments in the digital currency space.
Some banks are also recording new improvements in their operations. A recent scenario is the National Australia Bank, stating the successful completion of a first-ever stablecoin transaction using the Australian stablecoin, AUDN.
NAB Completes Cross-Border Crypto Stablecoin Transaction
According to the report, the stablecoin transaction occurred on the Ethereum blockchain. The pilot’s success resulted from a combined effort from the bank and its partners, Fireblocks and Blockfold. Fireblocks is an enterprise-grade cryptocurrency platform, while Blockfold is an expert in service consultancy that commits to tokenization.
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For the pilot transaction to be successful, both partners engaged their professionalism in the various areas of their services on the Ethereum blockchain. The service areas include the development of smart contracts, managing direct custody of cryptocurrencies, and burning and securely minting stablecoins.
The NAB realized the need for additional speed in cross-border dealings, the primary reason behind the pilot transaction. The idea was to shorten transaction time, moving it from days to minutes.
This move highlights the bank’s interest in establishing stablecoins pegged to different currencies to ease the transaction process, improve speed, and ensure transparency within the system. More so, it will simplify customers’ transactions and reduce the costs of each one, says Drew Bradford, executive general manager of NAB Markets.
First Bank To Deploy Cross-Border Stablecoin Transaction
Drew Bradford revealed that NAB had become the world’s first financial institution to deploy a stablecoin transaction on the Ethereum layer-1 public blockchain. He also stated that the pilot transaction came in response to the realization of the role of blockchain operations in the financial market.
He added that this technology would create a reliable and safe financial system backed by a stringent governance framework. This is already evident from the rapid improvements ongoing in the tokenization market.
Based on the bank’s announcement, the pilot transaction will affect seven currencies globally. These include Yen, Pound Sterling, Euro, the Australian, Singapore, New Zealand, and United States Dollars. These currencies are expected to operate on the Ethereum layer-1 blockchain, enabling better accessibility, transparency, and scalability.
For the Australian stablecoin (AUDN), NAB noted that it would be backed by the country’s currency, the Australian dollar. This is now a new era for the bank as it embarks on a financial journey from Web2 to Web3 technology, according to the CEO and co-founder of Fireblocks, Michael Shaulov.
Featured image from Pixabay and chart from Tradingview.com