ANZ becomes the first bank to mint Australian Dollar Stablecoin

ANZ

ANZ Bank has launched a stablecoin pegged to the Australian dollar, lowering the risk of digital asset purchases and encouraging more customers to use crypto.

It is the first time that an Australian bank has issued a digital asset pegged to the value of the Australian dollar, and it may be the first time that a major lender anywhere in the world has issued a stablecoin that is in a real transaction. used.

ANZ has announced that it has handed over the Australian dollar stablecoin, dubbed A$DC, to Victor Smorgon Group, a private wealth management firm specializing in digital assets, through digital asset fund manager Zerocap.

Faster transaction with ANZ

The A$DC was already used in a live transaction, allowing VSG to send $30 million to Zerocap in less than 10 minutes. This transaction usually takes a few days.

Zerocap is a market-leading digital asset and technology investment company operating at the intersection of crypto and traditional finance, offering products to investors and institutions around the world.

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The company’s decision to store digital assets pegged to the Australian dollar follows the Reserve Bank of Australia’s 2021 announcement that the growth of digital wallets may allow the exchange of tokens or digital forms of money backed by the RBA. despite the ongoing central bank’s pessimism about digital currencies.

Stablecoins are cryptocurrencies whose value is linked to a commodity, currency or inventory management algorithm.

Total Market Cap of Crypto at $1,914 Trillion on the Daily Chart | Source: TradingView.com

A$DC to Fiat Cash

ANZ has spent A$30 million through the Fireblocks platform through an ANZ-developed Ethereum Virtual Machine (EVM) compatible smart contract. The parties exchanged these coins and eventually cashed them in for Fiat money.

Nigel Dobson, Head of ANZ Banking Services, stated:

“An Australian dollar stablecoin issued by the ANZ is a critical first step in enabling our customers to securely access the digital economy.”

ANZ has collaborated extensively with prominent digital asset providers such as Chainalysis, Fireblocks and OpenZeppelin to develop an internal smart contract for stablecoin.

Big transformation

Fireblocks CEO Michael Shaulov explains:

“The financial sector is undergoing a massive transition and we are enabling institutions to leverage tokenization, DeFi, staking and crypto trading through end-to-end technology.”

Other major banks are likely to follow suit and set up their own stablecoins or other cryptocurrencies.

ANZ has a track record of successfully implementing blockchain solutions and is a founding member of Lygon, a company that uses blockchain technology to accelerate bank guarantees.

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Featured image from Reuters, chart from TradingView.com

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