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Australian Bank Progresses to AUD Stablecoin After Chainlink Test

TheMorningCrypto Desk
TheMorningCrypto Desk Published on September 15, 2023 08:27 PM

Prominent Australian Bank Moves Forward with AUD Stablecoin After Successful Chainlink Test Transaction.

Australian Bank Progresses to AUD Stablecoin After Chainlink Test
Source: Pexels

ANZ, a banking executive named Nigel Dobson, has expressed the bank's intent to tokenize the Australian dollar utilizing blockchain technology. The Australian and New Zealand Banking Group (ANZ) has taken a significant step forward in the development of its stablecoin, the A$DC, following the successful completion of a test transaction facilitated by Chainlink's Cross-Chain Interoperability Protocol (CCIP).

Nigel Dobson, the banking services portfolio lead at ANZ, referred to the successful test transaction as a pivotal moment for the bank and disclosed that ANZ has been conducting experiments across various networks to identify the most suitable use case for its stablecoin.

Australian Bank Advances AUD Stablecoin After Chainlink Test

Australia and New Zealand Banking Group (ANZ) has moved closer to launching its bank-backed stablecoin, A$DC, following the successful completion of a test transaction using Chainlink's Cross-Chain Interoperability Protocol. Nigel Dobson, ANZ's banking services portfolio lead, described this transaction as a significant milestone for the bank.

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“ANZ recently worked with Chainlink CCIP to complete a test transaction to simulate the purchase of a tokenised asset, facilitated using A$DC and an ANZ-issued NZ-dollar-denominated stablecoin.”

Dobson mentioned that the company has been conducting trials on various networks to determine the most suitable use cases for ANZ's Australian dollar stablecoin.

“We’re actively exploring the use of decentralised networks through a ‘test-and-learn’ approach,” the ANZ executive said.

Dobson expressed that ANZ recognizes substantial benefits in digitizing tangible assets such as the Australian dollar, a development that has the potential to revolutionize the banking sector.

Tokenised assets are already changing the way banking works, and the technology has the potential to do more — if the right pieces can come together.

The executive underscored the potential advantages of tokenizing real-world assets like the Australian dollar, suggesting that this could introduce efficiency and innovation into the banking industry. He highlighted the capacity to use such assets in digital form, which could result in increased efficiency, enhanced transparency, and elevated security levels. This transformative potential could lead to quicker, more cost-effective, and more secure financial transactions.

In March 2022, ANZ made history by becoming the first Australian bank to launch a stablecoin, A$DC, backed by the Australian dollar. A year later, the National Australia Bank (NAB) followed suit with its own AUDN stablecoin, also tied to the Australian dollar.

Simultaneously, NAB, along with other major Australian banks including Commonwealth Bank of Australia, Westpac, and Bendigo Bank, has recently started imposing restrictions on bank transfers to crypto exchanges deemed high-risk. These banks have cited the protection of their customers from cryptocurrency-related fraud as the primary motivation behind these limitations on transfers to crypto exchanges.

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