National Australia Bank, one of the four major banks in the country, has created a stablecoin AUDN for cross-border transactions and carbon credit trading, according to an Australian Financial Review report.
See related article: What are stablecoins, and why are some governments so afraid of them?
- The AUDN stablecoin is backed 1:1 by the Australian dollar and is expected to launch sometime in mid-2023, according to the report.
- Stablecoins are typically pegged to a currency or commodity which makes its price movements relatively stable.
- ANZ Banking Group, another one of Australia’s major banks, launched its Australian dollar-pegged stablecoin A$DC last year.
- Australia has also announced central bank digital currency (CBDC) trials, and has come up with a “token mapping” procedure to plug gaps in regulation and protect investors.
- See related article: Where is the stablecoin market heading in 2023?