‘Big Four’ Australian Bank Issues Stablecoin On Ethereum

With its recent stablecoin pilot, NAB joins a growing list of major financial institutions to use the Ethereum blockchain

article-image

Shutterstock.com/CryptoFX, modified by Blockworks

share

One of Australia’s ‘big four’ banks says it has completed its first intra-bank cross-border transaction using its own stablecoin via Ethereum.

The transaction, part of a National Australia Bank (NAB) pilot for an AUD-backed stablecoin, involved deploying stablecoin smart contracts for seven major global currencies, showcasing the potential to shorten cross-border transactions from days to minutes. 

NAB intends to issue its stablecoin under the ticker “AUDN,” which will be managed as a liability on its books. The firm further plans to enable transactions for the Australian, New Zealand, Singapore and US dollars, as well as the euro, yen and pound sterling. 

Digital asset infrastructure provider Fireblocks and fintech platform Blockfold assisting with the smart contracts, direct custody of the tokens (alongside minting and burning). NAB says its stablecoin was issued as an ERC-20 token.

“We believe that elements of the future of finance will be blockchain enabled and we’re already witnessing rapid change in the tokenisation market,” Drew Bradford, NAB Markets Executive General Manager, said in a statement.

The bank claimed it’s the world’s first major financial institution to process a cross-border stablecoin transaction via a public Layer-1 blockchain. A NAB spokesperson shared the current AUDN token contract with Blockworks, viewable on Etherscan.

In any case, ANZ — another ‘big four’ Australian bank — became the first institution in the country to issue and conduct payment of a stablecoin linked to the nation’s dollar last year, also via Ethereum, although it wasn’t cross-border.

As well, JPMorgan alongside Singapore’s DBS Bank and others executed foreign exchange transactions using tokenized deposits, a slightly different concept to stablecoins, as part of a 2022 pilot. The group used Ethereum Layer-2 network Polygon for the trades.

A number of institutions worldwide have also leveraged Ethereum and Polygon to issue tokenized bonds.

Still, NAB considers its recent stablecoin transaction a milestone for the bank. It expects to support “select corporate and institutional clients” in transacting with digital assets by the end of the year.

Updated Mar. 15, 2023 at 5:53 pm ET: Added AUDN token contract.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template Presentation (2).jpg

Research

With the recent election, it’s clear that there will be a meaningful shift in crypto regulations and legislation. Trump is likely as pro-crypto as a president can be. He launched (multiple) of his own NFT collections and is launching an Aave wrapper called World Liberty Fi. He has also spoken out and mentioned that he wants to make the United States "the crypto capital of the planet" and transform it into the "Bitcoin superpower of the world". He proposed creating a strategic national Bitcoin stockpile alongside support from Senator Cynthia Lummis, promising to retain 100% of all Bitcoin held by the U.S. government. More importantly, we’re likely to see deregulation across the board in a lot of industries, with crypto being one of them - as Trump has committed to keeping the crypto market largely unregulated. Crypto, DeFi in particular, has historically been knee-capped by overreaching and hostile governmental agencies and regulation by enforcement, as evidenced by the plethora of Wells notices and lawsuits over the past few years. With Donald Trump winning the presidency, Republicans taking control of the Senate, and being on the verge of securing the House, we think it’s likely that crypto realizes positive regulatory clarity. Below, you can find our analysts’ takes:

article-image

Solana is the crowd favorite to potentially flip Ethereum somewhere down the line, and it tends to feel realistic at times

article-image

Of course, a lot has happened since the 600+ survey respondents shared their thoughts between Aug. 15 and Oct. 1

article-image

AI’s future shouldn’t be decided by a handful of tech giants

article-image

A look at software wallet Exodus may show how an SEC shakeup could have a real impact on industry companies

article-image

Co-chairing Trump’s transition team to help fill administration positions is Cantor Fitzgerald CEO Howard Lutnick

article-image

Reflect is a delta-neutral currency protocol that lets tokens accrue yield without touching the banking system