National Australia Bank (NAB) took a big step forward in the financial world when it used its own stablecoin to complete an intra-bank cross-border transaction on the Ethereum blockchain.
This is, therefore, the first such achievement by a significant financial institution. Using Blockfold and Fireblocks, NBA was able to successfully conduct a transaction using seven of the world's most popular currencies.
If the test trade goes smoothly, it could significantly reduce the time and cost of international transactions for NAB's corporate and institutional clients who deal in numerous currencies. NAB is dedicated to exploring the right digital asset opportunities that offer demonstrable benefits to customers, according to Drew Bradford, the bank's executive general manager of markets.
NAB plans to manage its Australian stablecoin, AUDN, as a bank liability fully backed by the Australian currency, which is a crucial aspect of the bank's digital assets strategy. By the end of 2023, the bank aims to assist select clients in conducting transactions with digital assets.
NAB was able to successfully put its stablecoins on the Ethereum blockchain because it worked with Blockfold and Fireblocks. The two companies were experts at making smart contracts, minting and destroying stablecoins in a safe way, and keeping track of digital assets on the blockchain.
The CEO and co-founder of BlockFold, Francois Schonken, said it was "exhilarating" to see a multi-currency cross-border settlement happen on a public blockchain. The NAB stablecoin ecosystem uses cross-border payment rails that let real-world assets and financial products be turned into tokens.
Michael Shaulov, chief executive officer and co-founder of Fireblocks, views the successful transaction execution as the beginning of the transfer of Web2 to Web3 for financial services. This transition will be supported by blockchain technology, strong governance, and risk management. The Ethereum blockchain transaction is a big deal for the banking industry because it gives banks new ways to connect with customers and keep them interested.
Using blockchain technology on the Ethereum blockchain to complete a cross-border transaction is a big step forward for the banking industry. It opens up new ways to make cross-border transactions faster and cheaper, and it helps tokenization live up to its full potential. NAB wants to help some of its clients buy and sell digital assets by the end of 2023. This shows that the bank is serious about exploring the opportunities that Web3 offers.
