National Australia Bank (NAB) is launching a fully backed stablecoin called AUDN.
The stablecoin will launch on the Ethereum network and Algorand blockchain, a smart contract platform similar to Ethereum. NAB plans to launch the stablecoin sometime mid-year.
The stablecoin will be backed one-to-one with Australian fiat, and the money will be held by the NAB.
The stablecoin will primarily be used as a settlement token between multiple transacting parties. For example, AUDN could be used for carbon credit trading, overseas money transfers and repurchase agreements, NAB’s Chief Innovation officer Howard Silby said. This is known as atomic settlement, something the NAB is attempting to transition to in some markets, according to the Australian Financial Review, which first reported the news.
This is not the first-time banks in Australia have tried to launch a stablecoin.
Four banks attempted to create a similar stablecoin product last year. The initiative failed due to competition concerns and the four separate banks being at different stages in their crypto strategies, according to AFR.
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