National Australia Bank joins stablecoin bandwagon, to launch fiat-backed digital currency by mid-2023

The National Australia Bank is all set to join the list of financial institutions to offer stablecoin options for customers. Stating that blockchain technology will play a key role in the future of money, the NAB chief, Howard Sibly, said that the AUDN stablecoin would be minted on the Ethereum blockchain and pegged at 1:1 to the Australian dollar. Howard Silby Chief Innovation Officer - NAB Commenting on the collapse of the algorithmic stablecoin Terra USD, former NAB executive and current CEO of DigitalIX, Lisa Wade, said: "What we learnt from Luna last year is the look-through of the back book of the stablecoin is the most important thing: if it is not constructed properly, there is counterparty risk.” Could be launched in "multiple currencies" The NAB chief also said that apart from settling cross-border remittances, this new stablecoin will allow customers to settle transactions using blockchain technology in real-time using Australian dollars. Silby also said that the AUDN stablecoin could be offered in multiple currencies where the bank has licenses and AUDN will also focus on carbon credit trading and tokenisation of real-world assets. Catching up with rivals This announcement by NAB comes just nine months after rival bank Australia and New Zealand Banking Group announced that it had launched 30 million tokens of its own stablecoin dubbed A$DC, which is also used for international trading and settlements.