National Australia Bank (NAB) developed a stablecoin dubbed the AUDN after competitor ANZ Bank unveiled a comparable product last year.
AFR reported that the move by the country’s major bank would enable its corporate clients to participate in the digital economy. Based on the Ethereum network, the stablecoin is tied 1:1 with the Australian dollar (AUD).
Banking Institutions Pushing Stablecoins
According to the report, NAB plans to go live in the middle of the year. It will provide options to move money abroad and trade carbon credits. It will settle transactions using blockchain technology in real-time using Australian dollars. In March, Australia and New Zealand Banking Group (ANZ) was the first in the region to launch a stablecoin tied to AUD.
Meanwhile, stablecoin regulations are being created in Australia. The local report noted that NAB and ANZ are collaborating closely with financial regulators.
By introducing token mapping last year, the nation has been tightening its regulations on cryptocurrency. The administration has also prioritized stablecoin regulations after China’s digital yuan launch.
Australia Steps up Regulations
The Commonwealth Bank of Australia previously acknowledged that extending new cryptocurrency offers to ordinary investors is experiencing regulatory hurdles. This implied that the regulators are limiting retail exposure to the digital asset class.
In Dec., the Australian Securities and Investments Commission (ASIC) filed a lawsuit against the Finder.com division for offering unlicensed crypto services. Before that, ASIC filed a lawsuit against Qoin Crypto, the firm that created the digital currency, on the grounds that it misled or deceived approximately 80,000 users.
In addition, the FTX implosion has also impacted the Australian crypto market. The Guardian revealed in December that FTX owed $33 million to the defunct Australian cryptocurrency exchange Digital Surge.
According to the Syndey Morning Herald, NAB claimed no affiliations, connections, or exposure to FTX. However, the report noted that it owned complete deposit security for a rental guarantee bond obtained through a business that FTX locally acquired in 2021.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.