National Australia Bank (NAB) has announced its intention to issue its own stablecoin, which will be managed as a liability on its books. The stablecoin will operate under the ticker symbol "AUDN," and will be based on the Ethereum blockchain.
According to the bank, the AUDN stablecoin will facilitate transactions for various currencies, including the Australian, New Zealand, Singapore, and US dollars, as well as the EUR, JPY, and GBP.
To assist with the launch of its stablecoin, NAB has partnered with digital asset infrastructure provider Fireblocks and fintech platform Blockfold. The two firms will be responsible for the smart contracts, direct custody of the tokens, and the minting and burning of tokens.
NAB's stablecoin will be issued as an ERC-20 token, which means it will be compatible with most Ethereum wallets and exchanges.
The move to launch its own stablecoin is a significant step for NAB and highlights the bank's commitment to exploring the potential of blockchain technology. By issuing its own stablecoin, NAB aims to offer customers a faster, cheaper, and more secure means of making cross-border transactions.
The announcement comes amid growing interest in stablecoins, which have become increasingly popular due to their ability to provide a stable store of value and offer faster and cheaper transactions compared to traditional banking systems.
As NAB enters the stablecoin market, it is likely that other banks and financial institutions will follow suit, highlighting the growing mainstream adoption of digital currencies and blockchain technology.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.