ANZ, one of the biggest financial firms in Australia, became the first bank to mint A$DC, a stable coin pegged with the Australian Dollar
Australian Banking Group (ANZ), one of Australia’s largest financial institutions, became the country’s first bank to manufacture the A$DC, a stable coin tied to the Australian Dollar. Stable coins have been provided for institutional clients, according to a recent study published by the Australian Financial Review (AFR).
There has never been a stablecoin connected to the value of the Australian dollar before, and it may be the first time that a bank in any part of the globe has issued a stablecoin that has actually been utilized in a transaction. It comes at a time when the federal government is considering new legislation to assist Australia in becoming a leading nation in the field of digital assets. In a time when large banks are racing to develop new kinds of money, the move will strengthen ANZ’s credentials, and it will be keenly scrutinized by competitors and regulators.
After NAB executive of innovation and partnerships Howard Silby stated during the Australian Blockchain Week event that “banks are starting to have a mainstream blockchain moment,” ANZ is not the only local bank considering releasing a stablecoin in the near future. Silby claimed that NAB is developing a stablecoin that will be used to settle transactions on its distributed ledger technology (DLT)-based carbon credit platform “Carbonplace,” which is scheduled to open at the end of 2022 and will be available to the public.
“Stablecoins are a new way for customers to transact and in this case was an efficient and direct way for Victor Smorgon Group to access Zerocap’s digital asset exchange and move funds across a decentralized network,” said ANZ Banking Services Lead Nigel Dobson in the release.
“A historic day for digital assets today as ANZ becomes the first bank in the world to issue a stable coin, utilizing Zerocap’s OTC and custody services to facilitate a transaction with Victor Smorgon Group. We couldn’t be prouder to play a role in driving adoption and growing the ecosystem. Congrats and thanks to everyone involved,” Ryan McCall, CEO at Zerocap, mentioned in a LinkedIn post.
Although some people new to the crypto business consider the private issue of stablecoins to be a danger, others believe that deferring to big institutions whose holdings may give a more safe financial experience is a better option.
