Just recently, the National Australia Bank (NAB) teased that it was working on a unique and very surprising project.
The banking firm had not provided many details about the teased project so many were curious to know what it is going to be about.
However, some people had somewhat of an idea of what the bank might be working on or which technology the bank was interested to explore.
NAB to Launch a New Stablecoin
The National Australia Bank has just announced that it is currently working on the development of a stablecoin.
The new stablecoin is going to be pegged with the Australian dollar. According to the communication, the name of the new stablecoin has been dubbed “AUDN”.
This is not the first time that a stablecoin has been developed and launched by a banking firm in Australia. It is the second instance as one of the Australian banks had already launched its own stablecoin in the past.
The representatives from the NAB have provided the most important information about the development and issuance of the stablecoin.
They have revealed that the development of the new stablecoin is underway on the Ethereum blockchain.
Once the development process is complete, the new token will be launched through the Ethereum blockchain. However, they have plans to extend their network for the stablecoin.
Therefore, they are going to launch the new stablecoin through the Algorand blockchain as well.
What does the NAB Want to Achieve?
It has become a fact that out of all the countries, Australia is adopting crypto-blockchain technology at a really fast rate.
The country has taken a huge liking to cryptocurrency and blockchain technology. Therefore, they want to make the most use of it.
Even the locals in the country are attracted to crypto-blockchain technology. This is the reason why the adoption level of the technology is tremendously high in Australia.
The financial institutions in the country have also realized the importance of adopting blockchain technology to facilitate their customers.
They find blockchain-based transactions to be very fast and convenient. The users even have to pay very less fees compared to what they used to pay when making transactions through the banking institutions.
The NAB was compelled to go with the decision to ensure its client-base increases and it keeps on utilizing and benefiting from the most advanced technologies.
With the launch of the new stablecoin, the clients will not only be able to make blockchain-based transactions but also do it in Australian dollars.
The AUDN will be there to facilitate them and make their transactions smooth and convenient.
The NAB representatives even talked about other use cases for the AUDN. They have confirmed that the users will be able to perform carbon credit trading, overseas money transfers, and even repurchase agreements, using the AUDN.
AUDN Would Remain Secure
The reps at the NAB also clarified that the users must never worry about the AUDN losing its AUD-peg. This is because they have it all covered and backed with real-time assets.
There are not going to be any problems in terms of the de-pegging. They even have a very secure system and platform that the users will be interacting with to perform multiple actions.
They have confirmed that the assets backing up the stablecoin are gold as well as the USD.
Launch of the AUDN
The NAB has communicated that it is currently going through the development phase of the AUDN. Once the development is complete, they will carry out its testing.
The initial testing would be done by the developers. Then it will be the closed beta testing phase followed by a public beta testing phase.
When all the testing is done, the token will be made available to the locals through their platform. However, they are hopeful that the entire process will be completed and finalized by the end of June 2023.