National Australia Bank develops AUDN stablecoin
National Australia Bank has established AUDN, a stablecoin that enables corporate clients to settle transactions in Australian dollars, according to sources cited by the Australian Financial Review.
National Australia Bank (NAB) is introducing AUDN, a fully backed stablecoin. The stablecoin will debut on the Ethereum network and the Algorand blockchain, an Ethereum-like smart contract platform. NAB hopes to release the stablecoin towards the middle of the year.
The stablecoin will be backed 1:1 by Australian currency, with the funds kept by the NAB. The stablecoin will be used mainly as a settlement token between various parties. For instance, AUDN might be used for carbon credit trading, international money transfers, and repurchase agreements, according to Howard Silby, NAB’s chief innovation officer. This is known as atomic settlement, and the NAB is aiming to shift to it in some markets, as originally reported by the Australian Financial Review.
This is not the first time Australian banks have attempted to introduce a stablecoin. Last year, four banks sought to develop a comparable stablecoin offering. According to AFR, the plan failed to owe to competition concerns and the fact that the four individual banks were at various stages in their crypto strategy.