Nigel Dobson, a banking executive at ANZ, stated that the bank envisions tokenizing the Australian dollar using blockchain technology.
Australian and New Zealand Banking Group (ANZ) has taken a significant step towards launching its stablecoin, the A$DC. This move follows the successful completion of a test transaction using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
In a statement on September 14, Nigel Dobson, ANZ’s banking services portfolio lead, described the successful test transaction as a “milestone moment” for the bank.
Dobson revealed that ANZ has been experimenting with various networks to determine the optimal use case for its stablecoin.
The bank is “actively experimenting” with decentralized networks through a “test-and-learn” process, as emphasized by Dobson.
However, the executive highlighted the potential benefits of tokenizing real-world assets such as the Australian dollar, suggesting that this could bring efficiency and innovation to the banking industry.He noted that the ability to use such assets in a digital form could lead to increased efficiency, improved transparency, and enhanced security. This could potentially revolutionize the way financial transactions are conducted, making them faster, cheaper, and more secure.
In March 2022, ANZ became the first Australian bank to create a stablecoin, the A$DC, which is pegged to the Australian dollar. One year later, National Australia Bank followed suit with the launch of the AUDN stablecoin, which is also backed by the Australian dollar.
Meanwhile, NAB, along with other major Australian banks including Commonwealth Bank of Australia, Westpac, and Bendigo Bank – has recently started imposing limitations on bank transfers to crypto exchanges deemed to be at high risk.
These banks have pointed to the need to safeguard their customers from cryptocurrency fraud as the main reason behind their decision to impose restrictions on transfers to crypto exchanges.