Big 4 bank ANZ has become the first Australian bank to mint an Australia dollar (AUD) pegged stablecoin named A$DC.
But, rival bank National Australia Bank (NAB) also has its own stablecoin project which is expected to launch by the end of the year.
ANZ is working with local regulators such as the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Prudential Regulation Authority (APRA) to get the project signed off in a compliant manner. It has already run a test transaction on the Ethereum blockchain with its institutional partner Victor Smorgon Group, the family office tied to the billionaire Smorgon family.
According to a Thursday report from the Australian Financial Review (AFR), the stablecoin will initially be rolled out for institutional clients seeking a cost-effective on-ramp for crypto investments. However, it is likely to be opened up to the retail trading market in the near future as well.
The pilot transaction saw Victor Smorgon send 30 million AUD worth of A$DC to Zerocap, an Australian digital asset fund manager partnering with ANZ to provide key infrastructure and advisery services.
Fireblocks, a global digital asset custodian, provided the infrastructure, while OpenZeppelin audited the smart contracts. Chainalysis has signed on to assist with compliance and regulatory obligations.
Speaking with Cointelegraph, Zerocap CEO Ryan McCall emphasized that the ANZ’s move is not only a “huge step” in crypto going mainstream for Australia but also globally, as it provides a legitimate example of a stablecoin being backed by a…