National Australia Bank (NAB) developed a stablecoin called AUDN after competitor ANZ Bank unveiled a comparable product last year.
AFR reported that the move by the country’s premier bank will enable its corporate customers to participate in the digital economy. Based on the Ethereum network, the stablecoin is pegged 1:1 to the Australian Dollar (AUD).
Banking Institutions Pushing Stable Coins
According to the report, NAB is planning to go live in the middle of the year. It will provide options to transfer money overseas and trade carbon credits. It will settle transactions using blockchain technology using the Australian Dollar in real time. In March, the Australia and New Zealand Banking Group (ANZ) was the first in the region to launch a stablecoin pegged to the AUD.
Meanwhile, stablecoin regulations are being put in place in Australia. Local reports say NAB and ANZ are working closely with financial regulators.
The country has been tightening its regulations on cryptocurrency, introducing token mapping last year. The administration has also prioritized stablecoin regulations following China’s digital yuan launch.
Australia Steps Up Regulations
The Commonwealth Bank of Australia previously admitted it faced regulatory hurdles in making the new cryptocurrency offering to general investors. This implies that regulators are limiting retail exposure to the digital asset class.
In December, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against Finder.com Division for offering unlicensed crypto services. Earlier, ASIC filed a lawsuit against Qoin Crypto, a digital currency maker, on the grounds that it misled or defrauded around 80,000 users.
Furthermore, the FTX explosion has also affected the Australian crypto market. The Guardian revealed in December that FTX owed Australian cryptocurrency exchange Digital Surge $33 million.
According to the Cindy Morning Herald, NAB claimed no affiliation, connection or exposure to FTX. However, the report states that it owns full deposit protection for rental guarantee bonds acquired through a business acquired locally by FTX in 2021.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.