One of Australia’s largest bank, National Australia Bank (NAB), has broken the blockchain barrier by becoming the first major financial institution to complete an intra-bank cross-border transaction on the Ethereum blockchain using its own NAB-issued stablecoin.
The successful pilot transaction on the Ethereum blockchain has utilized smart contracts for seven major global currencies, with NAB investing in the development of Australia’s safest, simplest, and most secure digital asset ecosystem.
Reducing the time and cost of cross-border transactions in Australia
The transaction’s success indicates the potential to significantly reduce the time and cost of cross-border transactions, benefiting NAB’s corporate and institutional clients operating in multiple jurisdictions and currencies.
Drew Bradford, NAB’s executive general manager of markets, said the bank is committed to pursuing the right digital asset opportunities with clear customer benefits.
The success of the transaction was achieved through the rigorous governance frameworks in place, ensuring that NAB can support the creation of a safe and reliable digital financial system.
NAB’s stablecoin, AUDN, and select clients transacting with digital assets
NAB plans to fully back its Australian stablecoin, AUDN, one-for-one with the Australian dollar, and manage it as a liability of the bank.
This makes it the cornerstone for NAB’s ambitions in digital assets, and the bank aims to support select clients in transacting with digital assets by the end of 2023.
NAB collaborated with Blockfold and Fireblocks to build and deploy its stablecoins on the Ethereum blockchain. This involved utilizing their expertise in smart contract creation, secure minting and burning of stablecoins, and managing custody of digital assets on the blockchain.
BlockFold CEO and co-founder Francois Schonken said: “NAB’s multi-currency cross-border settlement execution on a public blockchain is exhilarating.
The NAB eco-system of stablecoins puts in place cross-border payment rails that unlock tokenisation potential for both real world assets and financial products.”
Michael Shaulov, CEO and co-founder of Fireblocks, said the successful trade execution marks the beginning of the evolution of financial services from Web2 to Web3, underpinned by blockchain technology, strong governance, and risk management.
The Ethereum blockchain transaction is a significant milestone for the banking sector, offering new ways to interact with customers, and drive engagement.
NAB’s ambition is to enable transactions across seven of the top globally utilized currencies: Australian, New Zealand, Singapore, and US dollars, Euro, Yen, and Pound Sterling.
As the first major financial institution to complete an intra-bank cross-border transaction on the Ethereum blockchain, NAB has taken a significant step forward in transforming financial services from Web2 to Web3.
This article has been originally published at: https://www.cryptopolitan.com/australia-bank-breaks-barrier-with-ethereum/