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National Australia Bank to Launch Stablecoin on Ethereum, Algorand: Report – Decipher

National Australia Bank (NAB) will become the second of the country’s major financial institutions to launch a stablecoinsaid a senior executive at Australian Financial Review (AFR).

The coin, dubbed AUDN, will be launched on Ethereum and Algorand blockchains later this year.

Howard Silby, Chief Innovation Officer of NAB, Told FRG the stablecoin would allow customers to settle transactions on the blockchain in real time, using Australian dollars.

NAB will be the second of Australia’s Big Four banks to launch a stablecoin, after rival Australian and New Zealander Bank (ANZ) created its own, dubbed A$DC, last year.

Early uses of A$DC indicate that Australian dollar stablecoins could play a role in Australia’s energy transition plans. In June, an investor used the stablecoin to buy carbon credits.

NAB’s stablecoin will also enable the trading of carbon credits, FRG reported. Other functions could include cross-border payments and repurchase agreements.

Individual banks are working on their own stablecoins after an unsuccessful attempt to cooperate on a single industry-wide Australian dollar stablecoin. The project never got off the ground due to competition issues and different stages of each bank in their crypto strategy.

Decrypt has contacted NAB for further comment.

Australia dives headfirst into crypto

Under Prime Minister Anthony Albanese, who came to power last May, Australia has committed to modernizing the country’s financial system and update its regulatory framework to accommodate crypto and other innovations.

Meanwhile, the country’s central bank is go forward with a central bank digital currency (CBDC) project. A pilot of the program is expected to be completed by mid-2023.

But it hasn’t all been smooth sailing for crypto projects.

In November last year, the asset manager behind two of the country’s first crypto exchange-traded funds (ETFs) application for the delisting of investment vehicles after just six months of trading, due to the global bear market.

A few days later, the Australian Securities Exchange (ASX) abandoned a long-running project to update its clearing system using blockchain, resulting in a $170 million write-off.

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