NAB pilots world-first international stablecoin transaction

The National Australia Bank (NAB) has successfully completed the first intra-bank, international transaction on a public blockchain, using NAB’s own stablecoin, AUDN. 

The AUDN stablecoin, backed dollar-for-dollar by Australian currency, was transferred through seven major global currencies on the Ethereum blockchain. 

NAB says the success of the pilot demonstrates the potential to slash the time it takes to transfer funds overseas from days to minutes, as opposed to traditional international money transfers. 

Aside from the potential to reduce waiting times for international transfers, NAB says its corporate and institutional clients could benefit from a simpler and quicker way to deal in multiple currencies, across multiple jurisdictions. 

NAB’s Drew Bradford said the bank seeks to increase speed and transparency, and reduce costs and complexity.

“We are committed to pursuing the right digital asset opportunities with clear customer benefits. Bringing multi-currency stablecoins to market demonstrates NAB’s focus on simplifying international banking protocols to increase speed and transparency while lowering costs and reducing complexity for customers,” Bradford said.

Bradford also believes blockchain tech could be a major part of the finance world in the future.

“We believe that elements of the future of finance will be blockchain enabled and we’re already witnessing rapid change in the tokenisation market. The stringent governance frameworks we have in place ensures we can support the creation of a safe and reliable digital financial system,” he said.

As the AUDN stablecoin from NAB is pegged to the Aussie dollar at a 1:1 ratio, there isn’t really much to gain from investing in it. 

Without the volatility of other kinds of cryptocurrencies, like Bitcoin, the lack of price movements means your AUDN holdings will almost always be worth what the Australian dollar is worth. 

If you’re interested in investing in crypto, or if you’re keen to tackle the world of share trading, make sure you read Mozo’s share trading guides for handy tips and how-tos. 

There are also plenty of share trading accounts that offer access to cryptocurrency investing, so make sure you compare share trading accounts to find one that lines up with your interests. 

And if you just want somewhere to start, check out the winners of the Mozo Experts Choice Share Trading Awards on the best share trading accounts in 2023 page.