Cryptocurrency News

Major Aussie bank takes next step to AUD stablecoin after Chainlink test transaction

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Australia and New Zealand Banking Group is one step closer to launching its bank-issued stablecoin A$DC after the bank successfully executed a test transaction on Chainlink’s Cross-Chain Interoperability Protocol (CCIP):

ANZ’s banking services portfolio lead Nigel Dobson said the transaction was a “milestone” moment for the bank in a Sept. 14 statement:

“ANZ recently worked with Chainlink CCIP to complete a test transaction to simulate the purchase of a tokenised asset, facilitated using A$DC and an ANZ-issued NZ-dollar-denominated stablecoin.”

Dobson said the firm has been experimenting with several networks — presumably to test out where the ANZ’s Australian dollar stablecoin can be best utilized:

“We’re actively exploring the use of decentralised networks through a ‘test-and-learn’ approach,” the ANZ executive said.

Dobson said ANZ sees “real value” in tokenizing real-world assets like the Australian dollar and that it can transform the banking industry if the right technologies can come together:

“Tokenised assets are already changing the way banking works and the technology has the potential to do more – if the right pieces can come together.”

ANZ minted the first A$DC stablecoin in March, 2022, which was the first of its kind in Australia.

Related: Don’t follow the US: Blockchain Aus CEO hammers ‘regulation by enforcement’

However, the other three Big 4 Australian banks — Commonwealth Bank of Australia, Westpac and National Australia Bank — recently imposed restrictions and in some instances, full blocks on bank transfers to several “high-risk” cryptocurrency exchanges.

Bendigo Bank followed suit in late July.

These banks cited the need to protect customers against cryptocurrency scams as the main reason behind imposing the restrictions.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom