• National Australia Bank (NAB) executed the first-ever cross-border stablecoin transfer by a major financial institution on a layer 1 public blockchain.
• The pilot showed the technology’s potential to cut transaction times from days to minutes and was part of NAB’s focus on simplifying international banking protocols.
• NAB expected to support corporate and institutional clients transacting in digital assets by the end of the year.
National Australia Bank Makes First Ever Cross-Border Stablecoin Transaction
National Australia Bank (NAB) has successfully executed the first ever cross border stablecoin transfer by a major financial institution using a layer one public blockchain. The intrabank transfer used the bank’s fully backed AUDN stablecoin, which is tied to the Australian dollar, and was conducted on Ethereum blockchain using smart contracts for seven currencies: Australian, New Zealand, Singapore and United States dollars, euros, Japanese yen and British pounds.
Partnership with Fireblocks Platform
NAB partnered with Fireblocks platform and BlockFold professional services consultants on this project. Drew Bradford, Executive General Manager for Markets at NAB commented that “We believe that elements of the future of finance will be blockchain enabled and we’re already witnessing rapid change in the tokenisation market” while adding that “The stringent governance frameworks we have in place ensures we can support the creation of a safe and reliable digital financial system”.
Pilot Showed Technology Potential
The pilot transaction demonstrated how much faster transactions could become; cutting down time from days to minutes. It is part of NAB’s goal to simplify international banking protocols as well as supporting corporate clients transacting in digital assets by end of 2021.
Benefits Of Blockchain Through Stablecoins
Stablecoins are becoming increasingly popular as an alternative payment method due to their low volatility compared with traditional cryptocurrencies like Bitcoin or Ethereum. This makes them more attractive for large institutions who want more control over their funds without being exposed to price fluctuations in volatile markets like cryptocurrency trading markets. By leveraging blockchain technology through stablecoins, transactions become more secure, transparent and efficient than traditional fiat payments methods like bank transfers or wire transfers – all while avoiding high fees associated with these methods too!
Conclusion
National Australia Bank has taken a huge step forward into mainstream adoption of crypto asset technologies through its successful execution of first ever cross-border stablecoin transfer by a major financial institution on public blockchain infrastructure. With several challenges yet ahead before mass adoption is achieved, this move sets precedent for other banks across world looking into similar technologies & applications as they seek secure & efficient solutions for future payments systems & global commerce networks!