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Date : 26/01/2023

Following ANZ, NAB Dives into the Crypto World by Launching its Stablecoin

After ANZ, NAB became Australia’s second bank to launch its stablecoin, AUDN. NAB developed an Australian dollar-backed Stablecoin on the blockchain before any other four major banks. Following this announcement, NAB share price (ASX: NAB) is currently at $31.60 and gained 12% in the previous 1 year. The current market cap of the company is $99.52 Billion.

A Stablecoin is a type of cryptocurrency linked to a fiat current, commodity or algorithm. In this case, NAB’s Stablecoin AUDN will be linked to Australian Dollar.

When one of Australia’s big four banks, ANZ, launched its Stablecoin by the name A$DC in March 2022, it turned out to be a good decision. Although ANZ’s A$DC scope is not that large, still not only ANZ became the first bank to dive into the crypto realm but provided its customers with an easy way to step in into the digital world.

Early uses of the ANZ’s Stablecoin A$DC showed that it could play a key role in various transactions related to Australia’s energy transition plans. So NAB has announced to launch of its Stablecoin in 2023 to target traders to purchase carbon credits.

National Australia Bank News & Analysis
National Australia Bank News & Analysis

NAB Announced its Stablecoin

Following ANZ, NAB Dives into the crypto world by launching its Stablecoin. NAB share investors should be really happy because the company has officially announced to step in into the crypto realm. The bank has announced its stablecoin coin, the name AUDN. Stablecoins are a kind of cryptocurrency pegged to fiat currencies, and the bank has just unveiled one. The AUDN issued by NAB is pegged to the Australian Dollar.

In December, the bank launched AUDN on Ethereum’s blockchain. It plans to use it for internal transactions shortly to try it out before extending to additional use cases, for which it will collaborate closely with its corporate customers.

After competitor Australia and New Zealand Bank (ANZ) unveiled its stablecoin, named A$DC, last year, NAB will become the second of Australia’s big four banks to produce a stablecoin and stepped in into the crypto realm.

ANZ’s announcement of A$DC and subsequent usage of the stablecoin suggests that Australian dollars may figure into the country’s energy transformation ambitions. An investor bought carbon credits with the stablecoin in June. And the process turned out to be smooth by doing a transaction in a few minutes compared to conventional banking, which would take days.

According to NAB news, the stablecoin will be geared at the carbon credits trading business, facilitating payments and transfers of carbon credits on a unified platform without needing third-party payment counterparties. The bank thinks that using AUDN would avoid using SWIFT, the international payments network, through quick cross-border money transactions taking several days and minimising it to minutes.

NAB: Australians are Rushing to Dominate Crypto

Australia’s new Prime Minister, Anthony Albanese, took office in May. Since then, the government has made commitments to modernise its financial system and alter its regulatory framework to accommodate crypto and other innovation.

Australia’s main banks have been at the forefront of stablecoin development, making the country a worldwide leader in this space. According to insiders within the industry, the drive for stablecoins was to combat the growing threat of competition by technology firms increasingly focusing on the payments sector. Meta’s (NASDAQ: META) effort with Libra was the last rallying cry for national banks to come up with alternatives. Although it eventually failed, it did serve this purpose.

According to AFR, the Big Four banks had intended to launch an Australian digital dollar at the beginning of 2022. But the preparations were ruined by worries about the competition. Additionally, coordination was challenging since the four banks were in various phases of stablecoin development.

NAB will be at the vanguard of stablecoins with the launch of AUDN. DigitalX, an ASX-listed digital asset business, has already committed to using the stablecoin AUDN as soon as it releases.

NAB Shares Forecast

So what is the outlook and forecast on NAB shares?

NAB stock investors should see this as a positive development in the company’s business model. Adding stablecoin to its business will create opportunities to discover new avenues and capitalise on them. The early adoption of new technology has always helped conventional businesses to stay relevant. It is a fresh breath of air for NAB share investors, and potential inventors should also not ignore this development.

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